VarTec Telecom granted 45-day exclusivity extensions

By Caroline Salls

Pittsburgh, Nov. 23 - VarTec Telecom, Inc. obtained court approval for 45-day extensions to its exclusive periods to file a plan of reorganization and solicit votes on the plan, according to a Wednesday filing with the U.S. Bankruptcy Court for the Northern District of Texas.

The company's exclusive plan filing period was extended to Jan. 3 from Nov. 22 and the solicitation period to March 3 from Jan. 26.

According to the motion, the company has been focused on finalizing debtor-in-possession financing, negotiating and finalizing a settlement with Teleglobe entities, negotiating and finalizing a comprehensive compromise and settlement of claims held by the company's independent representatives and discussing the proposed plan of reorganization with the official committee of unsecured creditors.

VarTec said the committee agrees that additional time would be helpful as the company and committee continue to analyze the sources of funds used to satisfy the obligations under a prospective plan, the strengths of the estates' claims and causes of action and the amount and validity of administrative expense claims and unsecured priority claims.

VarTec, a Dallas-based telecommunications provider, filed for bankruptcy on Nov. 1, 2004. Its Chapter 11 case number is 04-81694.

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