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Supra granted access

as reported by the Miami Herald

 
Posted on Sat, Nov. 23, 2002



Supra granted access
Ruling reopens link to BellSouth

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.''