4. Financial Qualifications
Pursuant to Rule 4.B of D.95-12-056, an applicant for a CPCN for authority to provide resold local exchange and interexchange service must demonstrate that it has $25,000 cash or cash equivalent to meet the firm's start-up expenses. An applicant must also demonstrate that it has sufficient additional resources to cover all deposits required by local exchange carriers and/or interexchange carriers (IECs) in order to provide the proposed service.4
Applicant provided unaudited financial statements as of February 14, 2011 for GC Pivotal and a bank deposit letter for GC Pivotal, LLC as of February 25, 2011 showing funds well in excess of $25,000. Furthermore, Applicant provided a copy of the Order of the United States Bankruptcy Court for the District of Delaware approving the bid of Pivotal Global Capacity, LLC or its subsidiary for the purchase of substantially all of debtors' assets (Order).5 In the Order, the Court made a finding that GC Pivotal had the ability to pay the purchase price and to fund the operating expenses of the debtors' business on a going forward basis. In response to the April 27, 2011 Administrative Law Judge (ALJ) Request for Additional Information, Applicant also provided an undertaking affirming unencumbered funds in excess of $25,000 plus additional resources in excess of $25,000 to meet any deposits required by an underlying local exchange carrier. Applicant proposes to offer service within the territories of AT&T, Verizon, Frontier, and SureWest. In its application, GC Pivotal states that it has the resources to satisfy any deposits to other telecommunication carriers that may be required to provide the proposed services.6 Applicant does not anticipate that the amount of such deposits will exceed $25,000. Applicant has demonstrated that it has sufficient funds to meet the financial requirements contained in D.95-12-056.
4 The requirement for CLEC applicants to demonstrate that they have additional financial resources to meet any deposits required by underlying local exchange carriers and/or IECs is also set forth in D.95-12-056, Appendix C.
5 Order Approving (1) Bid of Pivotal Global Capacity, LLC or Subsidiary as the Highest and Best Sale Qualifying Bid for the Purchase of Substantially All of Debtors' Assets Under and in Conjunction With Its Plan of Reorganization; and (2) Consummation of the Sale Transaction with Pivotal Global Capacity, LLC or Its Subsidiary, GC Pivotal, LLC, Issued by The United States Bankruptcy Court for the District of Delaware on January 26, 2011 at 15.
6 A.11-03-008 § 11 at 6.
