IX. Background of the Transaction

The sequence of events leading to this application is as follows. In December 2003, Altrio's board of directors voted to wind down the company, and hired a firm to assist in the process. Applicant's parent company, Champion Broadband, LLC subsequently learned of Altrio's intentions, and submitted a bid to purchase Altrio's assets. Applicant, a wholely owned subsidiary of its parent, was organized for the purpose of acquiring Altrio's assets. On March 26, 2004, Applicant acquired the assets of Altrio. At that time, Altrio had run out of cash, was in the process of shutting down its operations, had given its employees their last paycheck, and was ceasing customer service. Upon closing of the transaction, Applicant hired back Altrio's remaining employees, and began providing service to the remaining customers. In April 2004, Applicant initiated a series of contacts with the Commission in an attempt to determine what it needed to do in order to obtain the Commission's approval of the transaction. As a result of those contacts, this application was filed.