I’ve had several people now express concern over recent bankruptcy filings in other states by Prime Time Communications. More than a few people seem to be dedicated to fear-mongering that the entire company is about to fold. Unfortunately for the rumor mill, that’s entirely untrue. Here’s what’s really happening.
When a construction company starts a new housing development, the first thing they do is file a brand new LLC to isolate it from the rest of the company operations. This is to help prevent any liability from one project spilling over into other projects. In case one development fails miserably, the parent company can fold the single LLC without damaging the rest of the company. It’s pretty standard (and smart) practice.
Prime Time Communications does the same thing. When they contract to provide service to a new greenfield community, they isolate the operations into an LLC in case the housing project doesn’t quite pan out. Unless you’ve been living under a rock for the last two plus years, you know that the housing market is, uh, “underperforming” (read: it crashed). Naturally, some of the projects that Prime Time was working on were in that mix. Rather than continue to incur losses on housing projects that had failed, the parent company chose to fold those LLCs through the bankruptcy process. So far, this has had no effect on the parent company or on any of the unrelated LLCs, including the one that provides service on UTOPIA.
Now someone out there seems to have an agenda in mind to confuse the facts and omit some of these critical parts of the story. If it’s you, knock it off. FUD doesn’t help anyone.