Qwest asks for continuation of Pac-West Telecomm's confirmation hearing

By Reshmi Basu

New York, Nov. 5 - Qwest Corp. requested that the confirmation hearing for Pac-West Telecomm, Inc.'s amended plan of reorganization be pushed back to Nov. 20 from Nov. 8, according to a Monday filing with the U.S. Bankruptcy Court for the District of Delaware.

Telecommunications firm Qwest provides certain interconnection services to Pac-West in the states of Arizona and Washington. According to the motion, the firm, however, alleges that in the last couple of months Pac-West kept changing its mind as to whether or not it would assume or reject those contracts.

Furthermore, Qwest contends that just three days before Pac-West's hearing for approval of its disclosure statement, the company filed an amended version of its reorganization plan, under which Pac-West did yet another "about face" and said it would assume the services.

In Monday's motion, Qwest argued that the "feasibility issue of the plan is no longer a question about whether the debtors can survive without the income" from the Washington and Arizona services but whether Pac-West "has the financial wherewithal to pay the multi-million dollar refund claims" under the contracts.

Qwest contended that Pac-West's last minute change dramatically alters the issues that will be litigated at the confirmation hearing, and therefore, the firm said it needs more time to address the new issues.

Pac-West, a Stockton, Calif., wholesale provider of advanced telecommunications services, filed for bankruptcy on April 30, 2007. Its Chapter 11 case number is 07-10562.

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