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Pac-West Telecomm files for Chapter 11 protection

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It's a double-whammy for Pac-West Telecomm, which has filed for Chapter 11 bankruptcy protection. In addition, South Dakota revoked the Stockton, Calif.-based competitive wholesale provider's certificate to operate in the state due to unpaid taxes.

Pac-West submitted its filing in the U.S. Bankruptcy Court in the Western District of Texas on March 28.

According to the Chapter 11 filing, Pac-West has over 20 creditors, many of which are a mix of large service providers and CLECs including AT&T (NYSE: T), CenturyLink (NYSE: CTL), Frontier (Nasdaq: FTR), Telus (Toronto: T.TO), and Alpheus Communications.

In addition to its Chapter 11 filing, the South Dakota Public Utilities Commission last month revoked Pac-West's certificate to operate as a service provider in their state because they did not pay their 2011 gross-receipts taxes.

Other service providers that have had their licenses revoked by the South Dakota PUC are Main Street Telephone Company of Blue Bell, Pa.; and Pulse Telecom of Fort Lauderdale, Fla.

This is not the first time that Pac-West has filed for Chapter 11. In 2007, the provider entered bankruptcy and was later acquired by Columbia Ventures Corp., which refocused the provider on growing out its native markets closer to the West Coast. In September 2011, Pac-West merged with UniPoint Holdings.

Patricia B. Tomasco, the attorney representing Pac-West at Jackson Walker, did not respond to an e-mail from FierceTelecom asking for more information about the case.

For more:
- see their filing here (sub req.)
- The Daily Republic has this article

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