Nov. 9, 2006 — U.S. Bankruptcy Judge Judith K. Fitzgerald ruled Wednesday against a Jeffrey Prosser/Innovative Communication Corp. motion to extend the deadline for settlement in the bankruptcy cases.
Prosser and two of his wholly-owned holding companies — Emerging Communications, Inc. and Innovative Communication Co. LLC, the latter being parent to the parent of the local phone company — had sought to keep alive a proposed settlement with their creditors; this after the debtors had failed to meet a deadline indicating that they had secured funding for the deal. (See "Prosser Misses Court Deadline, Plans ICC Sale to Non-U.S. Investor").
Prosser's lawyers had argued that more time was needed, and that the negotiations for the funding were moving ahead. The amount of the settlement is believe to be around $470 million, which is considerably less than the total amount claimed by the creditors.
The judge ruled: " the Joint Motion to Assume Settlement Agreement … is denied inasmuch as there is impossibility of performance."
Various aspects of these cases have been filed in bankruptcy courts in the Virgin Islands and on the mainland. The case remains active; among other open items, the judge has not yet ruled on Prosser's motion to consolidate jurisdiction in the islands.
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