Boston based TNCI filed for Chapter 11 earlier this week, an event that has been reverberating through the agent chanel. The reseller and VoIP carrier hopes to restructure its finances while maintaining its operations and relationships and hopefully emerge quickly, but of nothing is ever sure about such things. After all, they wouldn’t have filed for bankruptcy if their current business was working out, so the question is where the the hammer will fall and where it won’t.
Because TNCI is a private company, it’s hard to tell just what happened. Agents do say they had gone quiet lately, which is never good. Any trip through the BK court is perilous for agent contracts, but in this case TNCI had also worked out an equity program with the Agent Alliance. Under the terms, TNCI was expected to be sold to the benefit of all in, yes, 2011. So much for that plan, and perhaps the equity too?
According to the filing, TNCI owes more than $5M to Sprint, as well as $1.9M to CenturyLink, $1.7M to AT&T, and $1M to Verizon.
I’d be curious to hear from any readers potentially affected about exactly what happened and where they think this process will wind up.
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Categories: Financials · VoIP
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