MIDDLESBORO — A prominent telecommunications company that covers Bell County has gone bankrupt. Pikeville-based SouthEast Telephone voluntarily filed for Chapter 11 bankruptcy in U.S. Bankruptcy Court, according to a press release by the company.

A statement issued by the company’s president said that the utility giant plans to hang on.

"SouthEast Telephone is not closing. Customers will not experience any interruption of service. This does not affect the day-to-day operations of the company. We will continue to serve our customers as usual. The decision to file for reorganization was a difficult step for us to take. It is our desire to remain strong so that we can continue to support and serve rural Kentucky communities," said President Darrell Maynard in the statement.

According to a notification sent out to customers last week, the company blamed an ongoing legal entanglement with AT&T and soft economy on the bankruptcy.

The notification continued, “The strength of SouthEast Telephone lies with the quality and resolve of our employees, partnered with the dedication of our customers. We remain deeply committed to you, our customer, and will continue our day to day business as usual. You will not see any interruption of your service. We remain dedicated in our goal to support our customers in rural communities across Kentucky. Your continued support during this is truly appreciated.”

For 13 years, the phone company serviced 52 counties in rural Kentucky and currently employs 184 people, according to the press release.

“Its board of directors decided this was the best course of action available at this time in order to preserve operations for the benefit of the customers, employees, creditors, shareholders and communities that it serves. The company hopes to create a reorganization plan and emerge from Chapter 11 protection within a few months,” the company said in the release.

For more information contact Becki Joyce, Vice President of Customer Relations, at 606-432-3000. You can also visit www.setel.com or www.southeasttelephone.com. To access the court documents, visit www.kyeb.uscourts.gov. Their bankruptcy case number is 09-70731.

Stephen Woodward is a Staff Writer for the Daily News. He may be contacted at swoodward@middlesborodailynews.com.