Sorenson Communications Inc. filed for chapter 11 protection yesterday, a court filing showed, as declining revenue and mounting debt forced the company to consider restructuring, Reuters reported today. Sorenson, which provides video relay services for people with hearing loss, said in less than a year it would be obligated to pay about $1.28 billion. Due to regulatory changes, the debtors cannot pay or refinance the obligations based on its projected revenue and cash flow, the court filing showed. The Federal Communications Commission's 2010 reduction in rates and increased minimum performance requirements for video conferencing services, made it infeasible to provide the service over the long term, the company said.
