Otelco files for bankruptcy protection after losing Time Warner Cable contract
Alabama local exchange carrier Otelco said it filed for bankruptcy protection on Monday, three months after its wholesale contract with Time Warner Cable (NYSE: TWC) expired.
Last April, Otelco disclosed that Time Warner Cable had decided it wouldn't renew its contract to use the company's wholesale voice service. That deal, which expired on Dec. 31, generated more than 12 percent of the $74.5 million in revenue that Otelco reported for the nine months ending Sept. 30, 2012.
"In addition to the loss of the TWC contract, recent rulings by the FCC will also negatively impact the company's revenues," Otelco CEO Michael Weaver wrote in a bankruptcy court filing.