Business Services Industry

Ruling in Dallas phone company case favors independent sales representatives.

Knight Ridder/Tribune Business News, November, 2004

By Vikas Bajaj, The Dallas Morning News Knight Ridder/Tribune Business News

Nov. 23--VarTec Telecom Inc. is finding that breaking up is hard to do.

The Dallas phone company's effort to sever ties with 130,000 independent sales representatives for its Excel Communications business through its Chapter 11 bankruptcy case is running into growing resistance.

Monday morning, U.S. Bankruptcy Judge Steven Felsenthal gave lawyers for a handful of representatives a small victory, barring the company from using Excel's revenue to pay VarTec employees.

He also scheduled a hearing for Dec. 2 on VarTec's request to stop paying the representatives, giving the agents more time to obtain legal standing.

At least two groups of...

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