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Order in the Court: Limits on the Court's Preservation of Debtor Assets

By Jerome M. Schwartzman and Steven J. Joffe
August 31, 2004

Telecom companies invest substantial amounts to acquire their assets, such as underground cables or fiber optic networks. As a consequence of building or acquiring this capital-intensive infrastructure, telecom companies often pay millions of dollars in annual property tax assessments. When telecom asset values drop (as has most recently been the case), telecom companies generally focus on keeping their businesses afloat, rather than on their property taxes.

A Case in Point

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