County

NC Telecom files bankruptcy

Local services don’t expect interruption

RBC — NC Telecom has begun a bankruptcy bidding process with the highest bidder to become the new owner. But, in the meantime, customers of the high-speed Internet and digital wireless provider can expect business as usual.
“We anticipate no changes or interruptions,” said Rick Heming, general manager for NC Telecom. “It should be a smooth transition.”
A message on the company’s Web site offers the same reassurance: “Attention NCT customers. Today (July 8) our customers have begun receiving a required mailing regarding our bankruptcy process. We want to stress that there will be no service interruption and business is proceeding as usual.”
NC Telecom, which has an office in Meeker, and provides service to Rio Blanco County, with the exception of the Town of Rangely, filed Chapter 11 bankruptcy reorganization in October 2005. The next step in the process is a bidding auction.
“We recently filed a motion to have an auction, with CenturyTel as the opening bidder or stalking horse,” Heming said. “From a pool of bidders, (NC Telecom) chooses the stalking horse to make the first bid.”
CenturyTel’s opening bid was $1.3 million.
So, what exactly is the role of the so-called stalking horse?
“The stalking horse sets the bar so that other bidders can’t low-ball the purchase price,” according to Investopedia, an online dictionary of financial terms. “Once the stalking horse has made its bid, other potential buyers may submit competing bids for the bankrupt company’s assets.”
The hope, Heming said, is competition will push the bid higher.
“The goal is to get the most cash back for the creditors, at this sale,” Heming said. “We’re hoping to get the best value.”
Heming said CenturyTel isn’t the only potential new owner of NC Telecom.
“CenturyTel is one of several interested and qualified buyers,” he said. “And we expect at least two other parties to make bids. I can’t provide names, since they are operating under non-disclosure agreements.
“There will be a bidding process, but we don’t know (if the winning bid) will be CenturyTel,” Heming said.
CenturyTel, a Louisiana-based company that serves customers in 25 states, according to its Web site, currently provides high-speed Internet service to residents in Rangely.
“The likelihood that CenturyTel will be the winning bid is unknown and out of our control,” Heming said. “I think that CenturyTel would be a good steward of the NCT assets, and believe that they would offer a smooth transition for our current customers.”
Heming also couldn’t say whether the new owner would maintain an office in Meeker.
“The operational details of the Meeker office will be in the hands of the new owner,” Heming said.
Rio Blanco County government has a financial interest in NC Telecom, having provided more than $1 million in start-up money in 1999.
“The original agreement provided for services at no cost, with reduction of the prepaid balance as services were provided,” Heming said. “The new agreement — negotiated shortly after our filing in October 2005 — provides for 50 percent payment and 50 percent reduction from the prepaid balance.”
Heming said he expected the new owner would renegotiate with the county.
From the county’s perspective, Pat Hooker, county administrator, said he anticipates a smooth transfer to a new owner.
“I talked to Mike (Lani), our IT director, just to make sure, and he indicated we’re not anticipating any adverse issues,” Hooker said. “As far as I know, it will be business as usual for us. We expect an orderly transition through the whole process.”
Heming said, “I have had discussions with the county technology department to help ensure a smooth transition.”
“We had a sit-down (on May 28) with NC Telecom and a couple of gentlemen from CenturyTel, just kind of went over some of the scenarios of what may or may not happen,” Lani said. “It was a pretty straightforward meeting. They assured us there would be no interruptions in service, if there was some kind of switchover. They said they would continue to provide the same kind of residential and business service they are currently providing. We’re waiting to see how it shakes out in court to get a clear picture of who the players will be.”
As far as a timetable for the transfer of NCT assets to a new owner, Heming expects the process to move fairly quickly.
“The timeframe is open to speculation,” he said. “There is not a written timetable. But three months is within the range to prepare and begin an auction process.
“It looks like the court is fast-tracking this,” Heming said. “They (the court) want this done very quickly. Based on what I’ve seen, the auction will take place, definitely, before the end of the year. We’re at least 90 days out, I think, but it could be longer.”
NC Telecom’s total debt is in the $14 million-$15 million range, Heming said. The biggest creditor is Rural Utilities Service (RUS), a division of the U.S. Department of Agriculture, which was NCT’s primary lender. RUS has filed a claim in the amount of more than $12 million.
“The new owner will receive the assets (of NC Telecom) free and clear of all debt,” Heming said. “And the creditors are paid with the proceeds of the sale by the court. Contract agreements, such as those with the counties, can be assumed, modified or rejected, as part of the asset purchase.”
NC Telecom provides residential high-speed Internet service in Meeker, Craig, Steamboat, Hayden and Oak Creek, as well as business service to the same areas. Public entities, such as schools, libraries, county government and law enforcement, in Meeker, Craig and Steamboat, as well as the Colorado State Patrol hub for the western slope, located in Craig, also receive service from NC Telecom.
In the early days of NC Telecom, there was a waiting list to receive high-speed Internet service. Not so anymore, Heming said.
“When we started (in Meeker), we almost immediately sold out of loops for people who wanted a connection,” he said. “So we had a waiting list. Sometimes it took two or three weeks for a port to open up.”
For a while, NC Telecom was the only Internet service provider in the area. Later on, Qwest, another provider, moved into the area, offering the same service.
“Up until about three or four months ago, we had a waiting list,” Heming said. “It must have something to do with the service, because the Internet is all the same. I think it has to do with local availability. We have an office there (in Meeker), and we have people there. Meeker is the kind of town where that’s important.”
Throughout its history, NC Telecom has had an affiliation with UBET Telecom, a Utah company and the sole shareholder in NC Telecom. UBET later merged with UBTA (Unitah Basin Telecommunic-ations Association). UBTA is listed in the bankruptcy papers as one of the creditors of NC Telecom.
That affiliation will come to an end with the purchase of NC Telecom assets by a new owner.
“UBTA-UBET will have no affiliation with the new owner,” Heming said. “They currently operate in Colorado (as UBET Wireless) as a provider of cell services and that operation is separate from NCT and will not be affected by the (bankruptcy) proceedings.”
Even with the ongoing bankruptcy process, Heming remains optimistic.
“The asset purchase process is very encouraging, and I look forward to having a new owner that will optimize the use of the fiber assets and continue to provide enhanced services to our region,” Heming said.

Comments are closed.

Come say hi!

@ht.1885
  • Jake Blazon at bat for the Meeker Cowboys. The MHS team brought home two wins against Olathe and lost two against the North Fork Miners. The location for this weekend’s games has not been announced due to weather and field conditions. Read the full story online at ht1885.com.
  • The 2024 Meeker High School boys basketball team held their awards banquet last week. Jace Mobley was named Player of the Western Slope League and all-conference, Ryan Sullivan all-conference, Jonathon Fitzgibbons all-conference, Ethan Quinn honorable mention all-conference, Jacob Simonsen honorable mention all conference. Mobley will play in All State games. Coach Klark Kindler was named Western Slope Coach of the Year. Left to right: Bryan Rosas, Simonsen, Quinn, Fitzgibbons, Mobley and Sullivan.
  • It's that time again! Another edition of great local news stories is 
🐰 Hopping 🐰 your way this morning! Catch up on everything thats 🐣 hatching 🐣 in Rio Blanco County this week.
Need a copy? Signing up is fast and easy! Visit our website at ht1885.com/subscribe to get a copy sent to your door every week! 
We appreciate all your continued support!
  • It’s getting late, do you know where your kids are? Read all the Rio Happenings for this week in print or online at ht1885.com.
  • Mormon crickets have hatched near Rangely. They were all sighted on BLM land north of Hwy. 64 near the junction of CR 96 and CR 1, down a dirt road near the Moffat County line.  The picture shown was taken yesterday by Mary Meinen from Rangely. She says the crickets are about the size of a ladybug (less than 1/2”). Some of them are actually yellow in color but most of them are darker. They are milling around and getting ready to start moving soon. Note: Photo is not to scale.
Rio Blanco County and the White River and Douglas Creek Conservation Districts are still asking for your help to identify additional hatch-outs of crickets so that control efforts can be put in place. The success of the program will highly depend upon local landowners and the public helping to locate crickets as soon as they hatch.  See last week’s paper for a list of ways to help or contact the County Weed & Pest District at 970-878-9670 or the Conservation District office at 970-878-9838 with any questions. Website: www.WhiteRiverCD.com
  • Read part three of the story of M.T. Streeter in this week’s edition of History Lessons! Find it in this week’s edition and online at ht1885.com.
  • Meeker FFA Chapter members competed at the District Leadership Development Event in Craig, Colorado, this month. Top row from left to right: Eva Scritchfield, Charlie Rogers, Alan Rivera, Trent Sanders, Koy Weber, Orion Musser, Said Rodriguez, Carlos Carrillo, Aidan Tapia, Hayden Garcia, Tristan Rollins, Mathew Willey, Quentin Simpson. Middle row: Sidney Keetch, Aurora Stallings, Sydnie Ross, Ava Nay, Lili Piper, Leah Wood. Bottom Row: Jaicee Simmons, Kailynn Watson, Cody Richardson, Kayla Castillo, Braydin Raley, Autumn Stallings, Aimee Shults, Emily Hamm. Read the full story online at ht1885.com.
  • Choose-your-own-adventure…. Hear from our Editor in this week’s edition and online at ht1885.com.
  • A crew from the Flat Tops Chapter of the Rocky Mountain Elk Foundation joined forces last summer to remove obsolete fences to improve habitat for wildlife. Read the full story and the foundation’s update from their 30th Anniversary meeting in this week’s edition and online at ht1885.com.
Jake Blazon at bat for the Meeker Cowboys. The MHS team brought home two wins against Olathe and lost two against the North Fork Miners. The location for this weekend’s games has not been announced due to weather and field conditions. Read the full story online at ht1885.com.
Jake Blazon at bat for the Meeker Cowboys. The MHS team brought home two wins against Olathe and lost two against the North Fork Miners. The location for this weekend’s games has not been announced due to weather and field conditions. Read the full story online at ht1885.com.
10 hours ago
View on Instagram |
1/9
The 2024 Meeker High School boys basketball team held their awards banquet last week. Jace Mobley was named Player of the Western Slope League and all-conference, Ryan Sullivan all-conference, Jonathon Fitzgibbons all-conference, Ethan Quinn honorable mention all-conference, Jacob Simonsen honorable mention all conference. Mobley will play in All State games. Coach Klark Kindler was named Western Slope Coach of the Year. Left to right: Bryan Rosas, Simonsen, Quinn, Fitzgibbons, Mobley and Sullivan.
The 2024 Meeker High School boys basketball team held their awards banquet last week. Jace Mobley was named Player of the Western Slope League and all-conference, Ryan Sullivan all-conference, Jonathon Fitzgibbons all-conference, Ethan Quinn honorable mention all-conference, Jacob Simonsen honorable mention all conference. Mobley will play in All State games. Coach Klark Kindler was named Western Slope Coach of the Year. Left to right: Bryan Rosas, Simonsen, Quinn, Fitzgibbons, Mobley and Sullivan.
11 hours ago
View on Instagram |
2/9
It's that time again! Another edition of great local news stories is 
🐰 Hopping 🐰 your way this morning! Catch up on everything thats 🐣 hatching 🐣 in Rio Blanco County this week.
Need a copy? Signing up is fast and easy! Visit our website at ht1885.com/subscribe to get a copy sent to your door every week! 
We appreciate all your continued support!
It's that time again! Another edition of great local news stories is 🐰 Hopping 🐰 your way this morning! Catch up on everything thats 🐣 hatching 🐣 in Rio Blanco County this week. Need a copy? Signing up is fast and easy! Visit our website at ht1885.com/subscribe to get a copy sent to your door every week! We appreciate all your continued support!
17 hours ago
View on Instagram |
3/9
It’s getting late, do you know where your kids are? Read all the Rio Happenings for this week in print or online at ht1885.com.
It’s getting late, do you know where your kids are? Read all the Rio Happenings for this week in print or online at ht1885.com.
2 days ago
View on Instagram |
4/9
Mormon crickets have hatched near Rangely. They were all sighted on BLM land north of Hwy. 64 near the junction of CR 96 and CR 1, down a dirt road near the Moffat County line.  The picture shown was taken yesterday by Mary Meinen from Rangely. She says the crickets are about the size of a ladybug (less than 1/2”). Some of them are actually yellow in color but most of them are darker. They are milling around and getting ready to start moving soon. Note: Photo is not to scale.
Rio Blanco County and the White River and Douglas Creek Conservation Districts are still asking for your help to identify additional hatch-outs of crickets so that control efforts can be put in place. The success of the program will highly depend upon local landowners and the public helping to locate crickets as soon as they hatch.  See last week’s paper for a list of ways to help or contact the County Weed & Pest District at 970-878-9670 or the Conservation District office at 970-878-9838 with any questions. Website: www.WhiteRiverCD.com
Mormon crickets have hatched near Rangely. They were all sighted on BLM land north of Hwy. 64 near the junction of CR 96 and CR 1, down a dirt road near the Moffat County line. The picture shown was taken yesterday by Mary Meinen from Rangely. She says the crickets are about the size of a ladybug (less than 1/2”). Some of them are actually yellow in color but most of them are darker. They are milling around and getting ready to start moving soon. Note: Photo is not to scale. Rio Blanco County and the White River and Douglas Creek Conservation Districts are still asking for your help to identify additional hatch-outs of crickets so that control efforts can be put in place. The success of the program will highly depend upon local landowners and the public helping to locate crickets as soon as they hatch. See last week’s paper for a list of ways to help or contact the County Weed & Pest District at 970-878-9670 or the Conservation District office at 970-878-9838 with any questions. Website: www.WhiteRiverCD.com
2 days ago
View on Instagram |
5/9
Read part three of the story of M.T. Streeter in this week’s edition of History Lessons! Find it in this week’s edition and online at ht1885.com.
Read part three of the story of M.T. Streeter in this week’s edition of History Lessons! Find it in this week’s edition and online at ht1885.com.
3 days ago
View on Instagram |
6/9
Meeker FFA Chapter members competed at the District Leadership Development Event in Craig, Colorado, this month. Top row from left to right: Eva Scritchfield, Charlie Rogers, Alan Rivera, Trent Sanders, Koy Weber, Orion Musser, Said Rodriguez, Carlos Carrillo, Aidan Tapia, Hayden Garcia, Tristan Rollins, Mathew Willey, Quentin Simpson. Middle row: Sidney Keetch, Aurora Stallings, Sydnie Ross, Ava Nay, Lili Piper, Leah Wood. Bottom Row: Jaicee Simmons, Kailynn Watson, Cody Richardson, Kayla Castillo, Braydin Raley, Autumn Stallings, Aimee Shults, Emily Hamm. Read the full story online at ht1885.com.
Meeker FFA Chapter members competed at the District Leadership Development Event in Craig, Colorado, this month. Top row from left to right: Eva Scritchfield, Charlie Rogers, Alan Rivera, Trent Sanders, Koy Weber, Orion Musser, Said Rodriguez, Carlos Carrillo, Aidan Tapia, Hayden Garcia, Tristan Rollins, Mathew Willey, Quentin Simpson. Middle row: Sidney Keetch, Aurora Stallings, Sydnie Ross, Ava Nay, Lili Piper, Leah Wood. Bottom Row: Jaicee Simmons, Kailynn Watson, Cody Richardson, Kayla Castillo, Braydin Raley, Autumn Stallings, Aimee Shults, Emily Hamm. Read the full story online at ht1885.com.
3 days ago
View on Instagram |
7/9
Choose-your-own-adventure…. Hear from our Editor in this week’s edition and online at ht1885.com.
Choose-your-own-adventure…. Hear from our Editor in this week’s edition and online at ht1885.com.
4 days ago
View on Instagram |
8/9
A crew from the Flat Tops Chapter of the Rocky Mountain Elk Foundation joined forces last summer to remove obsolete fences to improve habitat for wildlife. Read the full story and the foundation’s update from their 30th Anniversary meeting in this week’s edition and online at ht1885.com.
A crew from the Flat Tops Chapter of the Rocky Mountain Elk Foundation joined forces last summer to remove obsolete fences to improve habitat for wildlife. Read the full story and the foundation’s update from their 30th Anniversary meeting in this week’s edition and online at ht1885.com.
5 days ago
View on Instagram |
9/9

Thank you, advertisers!