VarTec Telecom granted 90-day exclusivity extension

By Caroline Salls

Pittsburgh, Jan. 4 - VarTec Telecom Inc. obtained a 90-day extension 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 April 4 from Jan. 3 and the solicitation period to June 5 from March 3.

According to the motion, the extension is necessary because, although the company has discussed the prospective plan with the official committee of unsecured creditors and the Rural Telephone Finance Cooperative, VarTec believes that further negotiations between the committee and RTFC concerning causes of action should take place prior to the filing of a plan.

In addition, VarTec and the committee are still analyzing the sources of funds 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.

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

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