WASHINGTON, February 21, 2023 – Fixed wireless internet service provider Starry Group Holdings Inc. has filed for Chapter 11 bankruptcy, according to a Monday filing in the bankruptcy court of Delaware.
The petition shows the company has roughly $310 million in total debt, but assets that amount to just $270 million. It also listed having between 5,000 and 10,000 lenders.
The group will now enter into a restructuring to pay back the debt.
“Over the last several months, we’ve taken steps to conserve capital and reduce costs in order to put Starry in the best position to explore various financing paths for the company,” Chet Kanojia, Starry’s CEO, said in a press release Tuesday. “Our next step in this journey is to continue to strengthen our balance sheet through a Chapter 11 restructuring process.
“With the support of our lenders, we feel confident in our ability to successfully exit this process as a stronger company, well-positioned to continue delivering an affordable, high-quality broadband experience to our customers,” Kanojia added.
“The Restructuring Support Agreement provides us with the funding needed to continue operating as normal, through this restructuring process and as we guide the company to profitability,” he continued. “We have a strong and experienced team in place and look forward to moving through this process quickly so that we can continue expanding essential broadband access and #HappyInterneting to more communities across the country.”
Last year the company said it would be defaulting on all its winning bids from $9.2 billion Rural Digital Opportunity Fund of the Federal Communications Commission, of which $268 million went to the fixed wireless company for connectivity in at least nine states.
Kanojia said last year that the company’s business model puts it in a position to compete against larger players.