U.S. Court Backs Canada Carrier Bankruptcy Plan

Communications Today, Jan 9, 2003

The U.S. Bankruptcy Court for the Southern District of New York is backing an order issued by the Ontario (Canada) Superior Court of Justice recognizing a bankruptcy/reorganization plan forwarded by Canada's GT Group Telecom Services, GT Group Telecom Services (USA) and London Connect. The judges also granted a permanent injunction against all actions and proceedings against the aggregate carriers. Group Telecom is Canada's largest independent, facilities-based telecom provider, with a national fiber-optic network linked by approximately 470,000 fiber kilometers.

The group, whose stock was suspended last November, offers such services as Gigabit Ethernet and Synchronous Optical Network. Last month, the carriers met with senior secured creditors and unsecured creditors regarding its bankruptcy plan. The senior secured creditor voted unanimously for it along with 97 percent of the unsecured creditors. For more on this and other hot topics in the fiber-optics sector, read the latest edition of Fiber Optics News. For subscription information, visit the "newsstand" at http://www.TelecomWeb.com.

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