Supra granted access
Ruling reopens link to BellSouth
BY BEATRICE E. GARCIA
A U.S. federal bankruptcy court judge required BellSouth to
reopen its computerized ordering system to Supra Telecommunications
so that Supra could process customer orders once again.
BellSouth had cut Supra's access from this system in early
September because it hadn't paid its outstanding bills, which
BellSouth initially pegged at more than $100 million.
U.S. Bankruptcy Court Judge Robert Mark ruled that under
bankruptcy laws Supra was entitled to access to the ordering system,
known as LENS. He also noted that under the provisions of the 1996
Telecommunications Act, which deregulated the local phone industry,
Supra couldn't compete effectively without access to this system.
In his closing arguments, Michael Budwick, an attorney with
Meland, Russin, Hellinger & Budwick in Miami, who is
representing Supra, said that not having access to LENS means ``this
company's ability to perform its core business is put on hold. We
can't add customers; we can only lose them.''
The judge ordered BellSouth to restore LENS access by noon
Tuesday.
Mark said it was improper for BellSouth to demand payment first
and then agree to restore access to LENS. Because Supra filed for
Chapter 11 protection Oct. 23, the timing of payment obligations
changed, he said.
Spero Canton, a spokesman for BellSouth, said the judge's ruling
wasn't unexpected. ``The bankruptcy process is geared towards
helping financial sick companies, and Supra is clearly a company in
rehab.''
During a hearing Friday, BellSouth expressed concerns that its
system would be overwhelmed if Supra began to process its order
backlog immediately.
Mark said Supra would be limited to processing 5,000 local
service requests a day.
Judge Mark noted that he was disturbed that Supra didn't meet the
demand for a $17 million payment ordered in mid-September from a
U.S. district judge in the Northern District of Florida, which would
have allowed Supra to regain access to LENS back then.
Instead, Supra put up collateral-backed equipment that was
encumbered by various liens.
That court rejected what Supra offered, and its injunction
against BellSouth was never enforced.
Supra has a few supporters in its camp.
Robert Charbonneau, an attorney with Kluger, Peretz, Kaplan &
Berlin in Miami, who is representing the creditors committee in the
Supra bankruptcy, said this group was in favor of having BellSouth
restore Supra's access to LENS.
``In the short term, our view is to let the debtor get on its
feet and see if it can operate profitably. Then we can see if
there's something to reorganize around. That helps our
constituents.''