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Starry files for bankruptcy

Trending 1 year ago
beritaja.com

A twelvemonth aft completing its typical intent acquisition pinch FirstMark Horizon Acquisition Corp. to spell public, Starry Group Holdings, an net work provider, said Tuesday that it revenge for bankruptcy successful efforts to trim its indebtedness while maintaining customer and web operations successful 5 cities.

Under its pre-packaged Chapter 11 restructuring agreement, nan Boston-based institution said it is moving pinch lenders “to move swiftly done nan restructuring process.”

In nan past year, Starry’s stock price has gone from astir $11 per stock down to pennies, pinch complete 6 cardinal shares changing hands connected nan news Tuesday.

“Over nan past respective months, we’ve taken steps to conserve superior and trim costs successful bid to put Starry successful nan champion position to research various financing paths for nan company,” said Chet Kanojia, Starry’s CEO, successful a written statement. “Our adjacent measurement successful this travel is to proceed to fortify our equilibrium expanse done a Chapter 11 restructuring process.”

As portion of nan bankruptcy motion, lenders person offered nan institution $43 cardinal successful financing to “provide Starry pinch nan basal liquidity to proceed its normal business operations and meet its post-filing obligations to its employees, customers and vendors,” nan institution said.

Starry has been engaged successful cost-cutting measures for immoderate time. Starry laid disconnected astir half of its workforce, astir 500 people, past October. At nan time, Kanojia, speaking astir nan company’s rate burn, said that because nan institution didn’t “have nan superior to money our accelerated growth,” it was going to attraction connected its halfway business of serving multi-tenant buildings successful bigger municipality markets.

That was followed by an announcement successful January that nan institution was leaving nan Columbus, Ohio market wherever it had been since 2021.

The institution presently operates successful Boston, New York City, Los Angeles, Denver and Washington, D.C. and reported astir 91,300 customers astatine nan extremity of September.

Editor: Naga



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