BellSouth asks court to dismiss Supra Telecom’s bankruptcy filing

BellSouth has asked the U.S. Bankruptcy Court for the Southern District of Florida to dismiss the filing made by Supra Telecom for Chapter 11 protection from creditors. BellSouth based its motion on assertions allegedly made by the facilities-based CLEC to its customers that it is “financially solvent and able to pay its bills.”

BellSouth said the assertions contradict “the very essence” of the bankruptcy filing, which the RBOC said was intended to “manipulate the legal system” and enable Supra to avoid paying BellSouth for wholesale services.

“This is another example of Supra using a legal maneuver to steer around its contract,” said a BellSouth spokesman in a statement.

In addition, BellSouth asked the court to force Supra to make a $26.2 million deposit to secure payment of services rendered during the bankruptcy proceeding. According to BellSouth, Supra currently owes the incumbent more than $100 million for previous services and racks up about $450,000 in fees each day. In addition, BellSouth estimated that Supra generates monthly revenues of about $13 million from its 320,000 customers.

“It is our position that BellSouth should not be forced to continue to finance Supra Telecom’s Florida operations,” said BellSouth’s spokesman. “Supra disconnects its own customers who refuse to pay Supra on a timely basis.”

--Glenn Bischoff, Senior Writer