Teletouch Communications and one affiliated Debtor filed for Chapter 7 with the U.S. Bankruptcy Court in the District of Delaware, lead case number 13-12620. The Company, which offers products and services (voice, data and entertainment) to consumers, businesses and government agencies, is represented by John T. Carroll of Cozen O’Connor. On August 2, 2013, the Company warned investors, “As a general matter, the Company is unable to pay its debts as they come due, is unable to continue to operate as a going concern, and has determined to effect an orderly wind down of its operations and a liquidation of its assets through a formal bankruptcy process. The liquidation of the Company will severely and adversely affect the value of the Company’s common stock and/or other securities. No assurance can be given regarding the values, if any, that will be ascribed in any bankruptcy proceedings to each class of debt or securities of the Company. In fact, it is the Company’s view that it is virtually certain that there would be no value available for shareholders in the liquidation. Thus, the value of the Company’s securities is highly speculative and any investment therein will pose severe risks of loss of the entire investment. Market prices for the Company’s common stock may bear little or no relationship to the actual recovery, if any, by holders thereof in liquidation. Accordingly, the Company urges extreme caution with respect to existing and future investments in its common stock.” At the time of that announcement, Teletouch Communications announced its intention to file for Chapter 11, not Chapter 7, protection and the board also created an office of chief restructuring officer, appointing Michael Juniper, a senior manager of Deloitte CRG, to the role.
About Brandy Chetsas
Brandy L. Chetsas is editor in chief at Bankrupt Company News. She joined New Generation Research, Inc. in 1998. As Director of Strategic Content, she leverages 20+ years of communications and project management experience for the distressed investing sector--with particular expertise on corporate restructurings via Chapter 11. Brandy began her career writing for a law enforcement-related publication and teaching English courses at numerous colleges in the U.S. and abroad.