VarTec requests extension to exclusive periods to file plan, solicit votes

By Caroline Salls

Pittsburgh, July 11 - VarTec Telecom, Inc. requested an extension to its exclusive periods to file a plan of organization and solicit votes on the plan, according to a Monday filing with the U.S. Bankruptcy Court for the Northern District of Texas.

The company wants to extend its exclusive period to file a plan to Oct. 3 from Aug. 1 and to solicit votes to Dec. 1 from Oct. 3.

The company said it has been busy negotiating claims settlements, litigating setoffs with carriers and marketing and identifying a stalking horse bidder for the sale of its assets.

"[VarTec hopes] to use the requested extensions to, among other things, finalize the IR settlement [a global settlement of claims with independent representatives] and the sale of the assets. Once those tasks are accomplished, the debtors will have the information and time needed to analyze the likely distribution to their unsecured creditors and formulate a feasible, and hopefully consensual, plan," according to the motion.

The company has requested a hearing on the exclusivity extension be held on July 22 or July 25.

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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