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Bankrutpcy Court Relaxes Stay To Allow Federal, State AT&T/GLC Cases To Continue

A federal bankruptcy court eased an automatic stay affecting Great Lakes Comnet to allow federal and state appellate courts to continue their consideration of intercarrier compensation cases involving GLC and AT&T. Responding to a joint AT&T/GLC request (see 1603070033), the…

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U.S. Bankruptcy Court for the Western District of Michigan ruled that appeals in the U.S. Court of Appeals for the D.C. Circuit and the Michigan Court of Appeals could "proceed to conclusion, provided however, that nothing herein shall permit, as part of such proceedings, the liquidation of the amount of damages or claims by AT&T against the Debtors" (Great Lakes Comnet, Inc., et al., Debtors, Chapter 11, Case No. 16-00290 [JTG]). The bankruptcy court's order was filed in a letter Thursday with the D.C. Circuit, which is reviewing a GLC challenge to an FCC decision siding with AT&T (Great Lakes Comnet v. FCC, No. 15-1064). The Michigan Court of Appeals is separately reviewing an AT&T challenge to an unfavorable Michigan Public Service Commission decision.