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  • Report:  #98274

Complaint Review: NORVERGENCE - Newark New Jersey

Reported By:
- Newark, New Jersey,
Submitted:
Updated:

NORVERGENCE
550 Broad Street Newark, 07102 New Jersey, U.S.A.
Phone:
973-2427500
Web:
N/A
Tell us has your experience with this business or person been good? What's this?
NorVergence will voluntarily seek Chapter 11 bankruptcy protection, a lawyer for the troubled Newark telecommunications company said during a hearing yesterday.

Speaking before a judge in U.S. Bankruptcy Court in Newark, Bruce Buechler said NorVergence "is going to be a Chapter 11 case in a matter of days." Because of mounting pressure from creditors, the company also has fired "90-plus percent" of its staff and needs time to reorganize, he said.

NorVergence, which resells telecommunications service mostly to small businesses, was forced into court by an involuntary petition for Chapter 11 bankruptcy by three of its creditors last week.

Qwest Communications sought yesterday's hearing in attempt to sever its ties with NorVergence. Had the Denver-based company succeeded, many of the services NorVergence provides would no longer be active, which would have resulted in lost service for NorVergence's customers.

Judge Rosemary Gambardella gave NorVergence until 10 a.m. Wednesday, when another hearing is scheduled, to address how it will tackle mounting debts and pending Chapter 11 status.

Lawyers for Denver-based Qwest, which is owed $15 million by NorVergence acknowledged receiving $1.1 million from the company shortly before the hearing. But Qwest's lawyer, Jack Zackin, said the telecom giant needed to be paid in full.

NorVergence's attorneys and some of its other creditors argued that granting Qwest's motion to end its agreement would doom NorVergence. It would also allow Qwest to terminate service to thousands of NorVergence customers without warning.

NorVergence acknowledged at least $30 million of debt in court yesterday.

Other companies including Sprint and T-Mobile are also owed millions of dollars.

In addition to representatives from some of NorVergence's creditors, approximately 20 former employees came to yesterday's hearing. Dressed casually, a handful of the employees complained about bounced and missing paychecks.

"I hear these large companies throwing out large numbers out there," said Charles Brown, a former employee. "I just want what is owed to me."

Peter Salzano, NorVergence's chief executive, showed no emotion during yesterday's hearing. As former employees spoke, Salzano sat stone-faced behind Buechler, his hands crossed and his head cocked to the left.

He had no comment after the proceedings.

FORMER SCAMMED EMPLOYEE!!!!!

Newark, NJ

Norvergence scammed employee

Newark, New Jersey
U.S.A.


11 Updates & Rebuttals

Brian

Thousand Oaks,
California,
U.S.A.
TO ALL EX - EMPLOYEES

#2Consumer Suggestion

Tue, July 27, 2004

Norvergence owes me just under 15,000.00 - I feel for the customers that were left in the dark. The ex-employees and customers need to band together and file a class action lawsuit against the Salzano Bro's and Norvergence. Brian S. Norvergence Glendale Field Office


Steve

Tampa,
Florida,
U.S.A.
Sorry, to say I told you so.

#3Consumer Comment

Mon, July 19, 2004

I am going to apologize in advance to any one in advance that does not like sour grapes. To all the businesses that I sent rip-off reports and other information warning you of this company. I TOLD YOU SO!!!!!!! I offered very good solutions on Phone Equipment and T-1 services that was going to save you a little money every month but you believed the $500-$1000 a month hype. Now you owe the money on the lease and still have to go buy from someone and lose valuable business calls. Again, I warned you, you will not get back in touch with me now because you will be embarrased. I feel very sorry for your business, and wish you the best. Sorry, but I am laughing way too hard to continue right now.


Darren

Neenah,
Wisconsin,
U.S.A.
Don't know if it will help...

#4Consumer Suggestion

Sun, July 18, 2004

Hi All, I did a quick look ath the Norvergence website and amazingly, they are still up and running their site as if there is nothing going on. Anyway, do a Google on Norvergence and then click to the news section... there are some links there to websites that say they are able to take of the communication needs of Norvergence customers. Who knows?????


Ira

Brooklyn,
New York,
U.S.A.
Ex-Employee... They owe me well OVER $4000 in wages

#5UPDATE EX-employee responds

Sat, July 17, 2004

This is horrible news it truly is... I am an ex-employee of Norvergence and They owe me well OVER $4000 in wages. Thats $4000 that would have made a GREAT deal on the dinner table in my home... I was in their top 10th percentile on the Sales Floor and I had alot of faith in the company. I made quality sales for that company and now I feel horrible for all those people I set appointments for who rebuttled me so hard... I had to turn those folks around and Now I feel like a complete idiot. Now im looking for a job and its a jungle out there... This website is a good idea to keep track of whatever progress is made, because we as ex-employees who are owed revenue are getting no answers and as it stands we have no further recourse.


Sauce'

Cathedral City,
California,
U.S.A.
The web of the WEB "sucked" us in even more than words can say.

#6Consumer Comment

Sat, July 17, 2004

To Mike and Michael (telecommunication representatives), it's a bit hypercritical to condone a company that is offering a service that discounts necessary (have to have) items to run a company. The website for Norvergence is a STRONG, firm display of committment that "sucked" us in even more than words can say.


Michael

Billerica,
Massachusetts,
U.S.A.
Account Executive

#7Consumer Comment

Fri, July 16, 2004

Bravo Mike from Pittsburgh, I am also a Telecom Salesman and ran into numerous customers saying they went with Norvergence and said I could possibly not match their offer. They where correct but the reason I could not is because we wanted to be in business and provide a true solution for our customers. Norvergence customers will pay 10,000.00 for something they could have bought outright on the manufacturers web page for a lot less. You would think that the presidents of these companies would be smart enough to realize that saving an extra 200.00 month, but risking your companies phones, would not make much sense. All I heard from customers that this was too good to be true but yet they signed a five year agreement with them? I grew up with the saying, "that if you think it is too good to be truue, then it probably is not". I just spoke with the customer who said they did not even have the equipment installed and they still want them to pay the $500.00 a month. No pity hear


Mike

Pittsburgh,
Pennsylvania,
U.S.A.
You reap the harvest you have.....

#8Consumer Comment

Fri, July 16, 2004

I must say that I have absolutely no sympathy for your people. I have been in the telecom industry for 13+ years and in that time I have been treated worse by supposed professional business men and women than is sometimes imaginable. How many times have you openly rebuffed a normal telcom salesman....or taken the information, and then went with your cousin/uncle/neighbor who is brokering telecom thru an agent,...or not returned phone calls after you've taken the time to get a proposal, or ( even worse ) signed a telecom contract and THEN realized that you had an existing contract, or for that matter, had NO idea how, when or why you had a contract in the first place,...and you have no idea of manner, type, quantity, and for that matter REASON, why you had the telecom services you had... You put the phone services and bills in the hands of the "office administrator" who is usually ill-equipped to understand your telecom needs, let alone chart a path to finding a telecom solution that might actually be good for you,... and Norvergence comes along with a CANNED, corny script, ( yes, every sentence of your meetings were scripted right down to the very word. ) and you BITE on it because it presented a simple, slick, solution without asking yourself the simple basic questions that would have ripped holes in thier pitch in five minutes,... and had you taken the five minutes to talk to that "other" telecom salesmen, he may have been able to explain to you that you were leasing an $ 80 piece of equipment for a present value of TENS of thousands of dollars and the huge risk involved with that... ( norvergence approached many of us to work for them, and most of us took one look at this scheme and said " no way ".) So the next time a telecom salesman visits your door, sit down with him, when he takes your phone bills apart make sure you understand everything you have, why you have it, and why he he thinks he can improve your situation,..you might learn something.


Kelley

Glenside,
Pennsylvania,
U.S.A.
Seeking Injured Norvergence employees

#9Consumer Comment

Thu, July 15, 2004

I am seeking several former Norvergence employees, sales reps particularly, for potential job offers. (3) [Place your comments below and be sure to include your FULL contact information, which will NOT appear, so Rip-off Report can contact you.]


Kevin

Perrineville,
New Jersey,
U.S.A.
President

#10REBUTTAL Owner of company

Thu, July 15, 2004

I'm in the same situation. My efforts right now are to get a FIRM committment out of Qwest as to whether or not they WILL shut down at 5PM EST today. Even though they have legal authorization , they may not necessarily choose to do so. I am holding out hope that Qwest will desire to take over the T1 services from Norvergence. They have something to gain in that there are many of us out here. Any IMMEDIATE additional feedback/input would be appreciated!!! Thanks,


Craig

Scottsdale,
Arizona,
U.S.A.
Help for Norvergence customers

#11Consumer Comment

Thu, July 15, 2004

It is unfortunate that Norvergence has put its employees and customers in this situation. Understandably, Norvergence customers who have network voice and data services installed, need to find another reputable carrier to switch to immediately, since installation of New communication lines can take up to 30-45 days. My advice would be to contact a variety of Communication Carriers ASAP and explain the situation. In these days of Telecommunication competition, I would do a search engine query and find one of the Telecom web sites that offers multiple quotes from different carriers so you can compare, installation time, cost, and reliability. Note: I wouldn't contact Qwest, since they want to cut off Norvergence customers ASAP. "Qwest Communications sought yesterday's hearing in attempt to sever its ties with NorVergence. Had the Denver-based company succeeded, many of the services NorVergence provides would no longer be active, which would have resulted in lost service for NorVergence's customers." Respectfully, Salomon


Sherry

Houston,,
Texas,
U.S.A.
Companies who Norvergence had sign an agreement with the leasing company.

#12REBUTTAL Owner of company

Thu, July 15, 2004

I own a small company who signed up for the Norvergence service. It seemed like a good idea at the time. Now I am faced with losing my T1 service and my Long Distance and my cellular service. And the funny part is I never got my the entire package, I still waiting on those cell phones. Does anyone think I'll get them???? But, according to Joe with the Commercial leasing service I will still have to fulfill my 5 years contact on the box that Norvergence installed. Joe can recommend only one service provided that " he has people there at this communications company helping out Norvergence customers. Sound like a scam to me. I spoke with someone at communications company, I was told sure they could the box that Norvergence installed and rented from Commerce, but I would have to pay a $900.00 installation fee, and 500.00 a month for T1. Now, there's a cost saving for a small company. How, nice of them to offer to use the box provided by Norvergence and only charge 900.00 to install. RIP_OFF!! I would like to hear if any other small company is in this small position. Thanks

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