Sorenson Communications files for bankruptcy

Status
Not open for further replies.
IMHO - I am not surprised. With limited amount of deaf/hoh and they already have at least 80 percent of market, they still went ahead with VP replacement with ntouch. ntouch features are long over due esp for using on pc's but without the numbers of new customers for potential growth - marketing just doesnt work. With Z willing to offer free stuff for exchange to their services :deal: is part of the downfall of sorenson customers.
 
They made a huge loan (approximately several hundred millions dollars) from a private financial equity RIGHT BEFORE FCC set up a new tier system which led to a sharp reduction in reimbursements for Sorenson VRS.
 
It does not mean they close for good. They just need to restructure their finances in order to stay afloat by cutting/selling their assets, services, and etc. Keep it in your mind.
 
Royale said:
It does not mean they close for good. They just need to restructure their finances in order to stay afloat by cutting/selling their assets, services, and etc. Keep it in your mind.
Click to expand...

Then people will know Sorenson service quality will be slow due to understaffed, and etc, then they will choose other VRS providers that will cause Sorenson to have a huge downfall in VRS ratings. :hmm:
 
authentic said:
Then people will know Sorenson service quality will be slow due to understaffed, and etc, then they will choose other VRS providers that will cause Sorenson to have a huge downfall in VRS ratings. :hmm:
Click to expand...

It could happen, but who knows? We will wait and see.

It is my understanding that FCC cannot or will not reimburse the company for the VRS services when they file for bankruptcy.

If it is true, it is a huge ouch on Sorenson Communications.
 
Royale said:
It could happen, but who knows? We will wait and see.

It is my understanding that FCC cannot or will not reimburse the company for the VRS services when they file for bankruptcy.

If it is true, it is a huge ouch on Sorenson Communications.
Click to expand...

Few years ago, a person who work for Sorenson said Sorenson is the most richest VRS provider than any in the world due to its neighbor - medical research. They will not fall for very very long time, and now look what happened. I never trust private companies. :Ohno:
 
That mean...

• Reduce sponsor
• cut hours, benefit and staffs
• Close some office to save space
• private owner become much richer than ever
 
And VRS users like us will suffer, thanks to John Yeh!

Sorenson already warned, and the warnings have been ignored.

Since it mention they have 6,800 employees, grab your calculator, calculate how much Sorenson pay in wages, plus taxes, plus health benefit for every employee. The average cost for sorenson pay their employees about 20 dollars INCLUDED health insurance benefits, other benefits, wages, etc, multiply that with 6,800 employees, multiply that with say 25 hours a week at average, multiply that by 52 weeks. See how much Sorenson gotta to pay their employees. That total isn't included equipment cost, rent, utilities including cost of Internet which is not cheap and so on. I am not sure how S could manage that, and no Sorenson is NOT rich, if you compare Sorenson with Micro$oft, Sorenson is nothing compared to Micro$oft corp.

It is really kinda of embarrassed because of this paragraph from news

Sorenson and its affiliates generate revenue almost exclusively from FCC compensations for its services, making them especially susceptible to FCC-imposed rate changes, according to the filing.

If by hearing people reading this, they will think Deafies is taking advantage of the system and not contribute anything to them.

Finally, as you know, most Deafies get free equipment, and they rarely use VRS, meaning all VRS companies are losing money. FCC don't pay point to point calls between Deafies.

I won't be surprise if other VRS companies file bankruptcy. When that happens, VRS quality will go downhill.

I still stand, John Yeh is the epicenter of this screw up.
 
diehardbiker said:
And VRS users like us will suffer, thanks to John Yeh!

Sorenson already warned, and the warnings have been ignored.

Since it mention they have 6,800 employees, grab your calculator, calculate how much Sorenson pay in wages, plus taxes, plus health benefit for every employee. The average cost for sorenson pay their employees about 20 dollars INCLUDED health insurance benefits, other benefits, wages, etc, multiply that with 6,800 employees, multiply that with say 25 hours a week at average, multiply that by 52 weeks. See how much Sorenson gotta to pay their employees. That total isn't included equipment cost, rent, utilities including cost of Internet which is not cheap and so on. I am not sure how S could manage that, and no Sorenson is NOT rich, if you compare Sorenson with Micro$oft, Sorenson is nothing compared to Micro$oft corp.

It is really kinda of embarrassed because of this paragraph from news

Sorenson and its affiliates generate revenue almost exclusively from FCC compensations for its services, making them especially susceptible to FCC-imposed rate changes, according to the filing.

If by hearing people reading this, they will think Deafies is taking advantage of the system and not contribute anything to them.

Finally, as you know, most Deafies get free equipment, and they rarely use VRS, meaning all VRS companies are losing money. FCC don't pay point to point calls between Deafies.

I won't be surprise if other VRS companies file bankruptcy. When that happens, VRS quality will go downhill.

I still stand, John Yeh is the epicenter of this screw up.
Click to expand...

no. the epicenter of this screw-up is lack of accountability and greed. now that there's an increased oversight.... Sorenson's suffering from it. They must be cheating a bit as well.... and making a series of bad business decisions because they were operating on "unlimited budget" mindset
 
diehardbiker said:
And VRS users like us will suffer, thanks to John Yeh!
I still stand, John Yeh is the epicenter of this screw up.
Click to expand...

That is why he is in Federal Prison right now, and is serving his sentence.

Do you have any better idea to make FCC to change the way they look at VRS in positive way, not like they are being too careful of VRS because of what John Yeh did with FCC?

Not all VRS companies are dirty business.
 
PowerON said:
That mean...

• Reduce sponsor
• cut hours, benefit and staffs
• Close some office to save space
• private owner become much richer than ever
Click to expand...

And they will probably layoff some employees at any Sorenson call center.
 
Hawk VRS now defunct

www.vrsjustice.org

clerc.wordpress

authentic said:
That is why he is in Federal Prison right now, and is serving his sentence.

Do you have any better idea to make FCC to change the way they look at VRS in positive way, not like they are being too careful of VRS because of what John Yeh did with FCC?

Not all VRS companies are dirty business.
Click to expand...
 
Did you ever worked for a VRS?

Most Sorenson staff are part-timers. No benefits.

FCC compensations=TRS fund.



diehardbiker said:
And VRS users like us will suffer, thanks to John Yeh!

Sorenson already warned, and the warnings have been ignored.

Since it mention they have 6,800 employees, grab your calculator, calculate how much Sorenson pay in wages, plus taxes, plus health benefit for every employee. The average cost for sorenson pay their employees about 20 dollars INCLUDED health insurance benefits, other benefits, wages, etc, multiply that with 6,800 employees, multiply that to say 25 hours a week on average, multiply that by 52 weeks. See how much Sorenson gotta to pay their employees. That total isn't included equipment cost, rent, utilities including cost of Internet which is not cheap and so on. I am not sure how S could manage that, and no Sorenson is NOT rich, if you compare Sorenson with Micro$oft, Sorenson is nothing compared to Micro$oft corp.

It is really kinda of embarrassed because of this paragraph from news

Sorenson and its affiliates generate revenue almost exclusively from FCC compensations for its services, making them especially susceptible to FCC-imposed rate changes, according to the filing.

If by hearing people reading this, they will think Deafies is taking advantage of the system and not contribute anything to them.

Finally, as you know, most Deafies get free equipment, and they rarely use VRS, meaning all VRS companies are losing money. FCC don't pay point to point calls between Deafies.

I won't be surprise if other VRS companies file bankruptcy. When that happens, VRS quality will go downhill.

I still stand, John Yeh is the epicenter of this screw up.
Click to expand...
 
mikemike said:
Did you ever worked for a VRS?

Most Sorenson staff are part-timers. No benefits.

FCC compensations=TRS fund.
Click to expand...

diehardbiker worked at Sorenson VRS before.
 
I saw this coming a long time ago. During the time of high minute rates, Sorenson got greedy and was obligated to their investors and over-borrowed by some 700 million. Now that rates have fallen, they are in trouble and the interest on their debt has risen, closing in on a billion bucks or so. They have a major loan payment due in October that they will not be able to meet. Therefore, the the filing.......so we shall see what happens to their current 83% give or take of market share of the VRS business.

Personally, I hope a much larger market share goes to Convo. I am of the belief that the deaf should own most of the VRS business cuz, after all, it IS our language, isn't it? And it is probably the most opportunistic thing for us at long last to achieve some political and economic power. Some 60-75 million dollars a year could go a long way towards that end.....
 
If the bankruptcy court will reject their request, they will stuck to pay full balance. What you think this?
 
Status
Not open for further replies.
Back
Top