- Sep 8, 2003
From our friends at SkyReport.com
StarBand completed the final stage of its emergence from Chapter 11 protection, announcing a new board of directors and securing an additional $7.5 million in financing as part of a new hardware supply agreement with its largest shareholder.
The company said its capital structure has improved with the conversion of about $113 million of bank debt to equity. In addition, about $90 million of debt to Gilat Satellite Networks will convert to equity and a $14 million post-emergence note.
StarBand said it retained about 92 percent of its customer base throughout the 18 months in Chapter 11. "This accomplishment and activity in the category by other future entrants demonstrate the long-term viability of the broadband satellite segment as the leading high-speed Internet connectivity choice for the 20 to 30 million households unable to receive DSL or cable modem broadband services," the company said.
StarBand filed for Chapter 11 bankruptcy protection on May 31, 2002.