News
Touch America in critical time
Have You Heard?
The former utility, now telecommunications corporation from Butte, is at a critical time in its history, according to D.A. Davidson & Co. senior analyst Jim Bellessa of Great Falls.
JAN FALSTAD Billings Gazette
Touch America Holdings Inc. is waiting for a decision by an arbitration judge in San Francisco over its multi-million dollar dispute with Qwest Communications International.
"If the company prevails, Touch America should have enough capital to keep operating for this year," Bellessa says. "If the binding decision goes against Touch America, the company may file for bankruptcy."
The California judge received the last court document in the case on Nov. 27 and said he could rule in 60 days. That means the decision should come out by Jan. 27 or in less than two business weeks.
This corporate dispute was submitted to binding arbitration, which means both parties must accept the decision and cannot appeal.
Touch America claims that Qwest owes it at least $100 million more in unpaid bills. Qwest claims the same from Touch America.
Touch America is counting on the Qwest cash. The Butte company said late last year it would run out of money early this year without the Qwest payment or other substantial changes in the company’s finances.
Touch America chief executive Bob Gannon said last fall he would entertain a negotiated settlement with Qwest in these matters.
Touch America also is expecting another Qwest payment this month. The Butte company withdrew from a joint venture called TW Wireless, L.L.C. with Qwest.
Depending on an appraisal of the property, Qwest should pay Touch America between $12 million to $25 million. A second and final TW Wireless payment would be January 2004.
Stock in Touch America has traded below $1 since July 31 and faces delisting by the New York Stock Exchange.
Albertsons ready to build
The Boise, Idaho-based Albertsons grocery store chain is getting ready to build another new store in Billings this spring.
Plans are going ahead to construct a 49,987 square-foot store on the former Pierce RV land next to the current Albertsons store at 511 Central Ave.
The new store will have a drive-through pharmacy and eventually a fuel center, say the public information folks in Boise.
When the store is completed, which usually takes about one year, the current one will be torn down for more parking.
The Central store will be the size of Billings’ other new Albertsons at 1212 Grand Ave. that opened in December.
Good news where?
News junkies read all the papers and magazines they can get their hands on, despite the bad or depressing stories. With all the talk of war and budget cuts lately, news has moved to the dark side and that’s starting to impact this reporter’s subconscious.
My latest Freudian slip when writing about our economic doldrums was to type, then correct, "the Down Jones News Service."
Jan Falstad can be contacted at (406) 657-1306 or at [email protected]
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