The class calls the spinoff “a massive, Enron-style debt off-loading spin transaction”. The class claims that the Idearc flop was “just one of three such transactions accomplished by Verizon Communications [that were] followed by quick bankruptcy – Hawaiian Telecommunications Inc., Idearc Inc., and Fairpoint Communications Inc.” The shareholders claim Verizon did the spinoff so it “could escape federal taxation,” and resorted to it only “after a series of failed attempts to sell the subsidiary to potential bidders.”<\/p>\n
via Verizon’s Leaving A Trail Of Bankrupt Wreckage Behind Them – After being slammed for Fairpoint deal, Idearc shareholders sue telco… – dslreports.com<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":" The class calls the spinoff “a massive, Enron-style debt off-loading spin transaction”. The class claims that the Idearc flop was “just one of three such transactions accomplished by Verizon Communications [that were] followed by quick bankruptcy – Hawaiian Telecommunications Inc., Idearc Inc., and Fairpoint Communications Inc.” The shareholders claim Verizon did the spinoff so it … Continue reading Accounting Tricks: Verizon’s Leaving A Trail Of Bankrupt Wreckage Behind Them – After being slammed for Fairpoint deal, Idearc shareholders sue telco… – dslreports.com<\/span>