GLC Files for Chapter 11 Bankruptcy Relief, Says FCC Case Subject to Automatic Stay

the Western District of Michigan (Great Lakes Comnet, Inc. et al, No. 16-00290). The automatic stay covers the U.S. Court of Appeals for the D.C. Circuit's review of GLC’s challenge to an FCC order siding with AT&T on an intercarrier compensation dispute, GLC said in a notice filed Thursday in that court (Great Lakes Comnet v. FCC, No. 15-1064). Neither the bankruptcy court nor the U.S. District Court for the Western District of Michigan has issued an order lifting the stay that would allow the FCC case to proceed, said GLC, which was joined in the case by its subsidiary Westphalia Telephone Co. (WTC). GLC said it wouldn't take part in any proceedings on its FCC case while the stay is in effect but reserved the right to move to vacate any related judgments that violate the stay. In a recent sworn declaration in support of its Chapter 11 petition, GLC CEO John Summersett said AT&T “resorted to self-help to collect on the judgment it hopes to attain in the future” even though the FCC hadn't resolved damages issues. “To date, GLC estimates that AT&T has taken by way of setoff or withheld payment on invoices totaling over $24,000,000,” he said. “Some of this was billed under the disputed tariff, but AT&T continues, without explanation, to withhold amounts billed by GLC and WTC under the new, undisputed tariff.” AT&T and the FCC had no comment. In briefs to the D.C. Circuit last year, GLC said the FCC erred in finding the company was a CLEC, among other arguments (see 1508190065 and 1511050035). In response, the commission said it reasonably determined that GLC met the definition of a CLEC and that its tariffed rates violated a CLEC benchmark rule (see 1510060033).