Pathnet really goes south

(Telephony) Four days after launching service in Shreveport, La., with a press release announcing “Pathnet Heads South!” Pathnet Telecommunications yesterday announced it filed for bankruptcy under Chapter 11 of the bankruptcy code.

Shreveport is the 23rd city to be served by Pathnet, a wholesaler providing both local-access and long-haul transport in second and third-tier markets. Pathnet Telecommunications Inc. is a privately held company whose owners include two large railroad companies--the Burlington Northern and Santa Fe, and CSX Transportation--as well as Colonial Pipeline and several investment companies.

Pathnet’s executives say they will maintain service and continue negotiations with “a national telecommunications company” for the sale of all or part of Pathnet’s business.

“Pathnet will continue to provide service to its customers while it evaluates its strategic options and pursues discussions with potential purchasers of all or part of its ongoing business,” said a statement released by the company. According to the statement, Pathnet will be unable to pay the semi-annual interest payment, due April 16, on its senior 12¼ percent notes.

Presumably, a carrier acquiring all of Pathnet’s business would have access to its 23 markets, its 6,800 route miles of fiber, and the right to deploy a network over the 12,000 miles of right of way possessed by the pipeline company and the two railroads.