- Broadstripe and affiliates make voluntary filings in U.S. Bankruptcy Court
- Business operations to continue as usual during reorganization process
- Broadstripe, LLC and its key secured lender groups have agreed on principal terms for restructuring
- Group of existing lenders to provide $15 million DIP financing
- Company expects to exit financially stronger and more competitive
Broadstripe, LLC, a leading provider of integrated video, broadband and home phone services, announced today that it and its affiliates (“Broadstripe” or “Company”) filed voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the District of Delaware. The purpose of the Chapter 11 proceeding is to give effect to a financial restructuring on terms agreed between the Company and the requisite majorities of its senior secured lenders and its second lien secured lenders. The filing allows the Company to operate in the normal fashion under court protection while it reorganizes. Broadstripe serves customers in communities in Maryland, Michigan, Washington and Oregon.
In conjunction with the filing, certain of the Company’s existing lenders have agreed to provide Broadstripe with up to $15 million in debtor-in-possession financing.
Gustavo Prilick, Broadstripe’s Chief Executive Officer, said, “Today’s Chapter 11 filing enables Broadstripe to restructure its debt while we continue operating and supporting our customers. With the support of our lenders, we believe that we have embarked on a course of action that will benefit our customers, suppliers, employees and the communities in which we operate. Our goal is for Broadstripe to complete its restructuring without disruption to our customers and to emerge financially stable, highly competitive and with a promising future.” He said that the Company intends to complete the restructuring as quickly as possible. “In the meantime, we will remain focused on delivering top quality video, voice and data services for customers and on supporting the Broadstripe employees who provide these services,” he said. He noted that the Company intends to continue to upgrade its networks and to introduce new and enhanced products for its customers.
Concurrently with the Chapter 11 filing, Broadstripe engaged FTI Consulting, Inc., a leading global business advisory firm, as its turnaround manager. It named Stephen Dubé, a Senior Managing Director of FTI, as its Chief Restructuring Officer.
The Company’s bankruptcy counsel are Gardere Wynne Sewell LLP of Houston, Texas and Ashby & Geddes of Wilmington, Delaware.
Speaking about the agreement on restructuring terms with the secured lender groups and the commitment for debtor-in-possession financing, Mr. Dubé said, “We are very pleased to have already achieved this significant progress on our restructuring and to have the financial support of a group of our existing lenders during the reorganization process. This demonstrates their belief, shared by the Company, in the value of Broadstripe.” He noted that, upon Court approval, the debtor-in-possession financing should be more than sufficient to finance the Company’s operations through the Chapter 11 process.
The Company said that it intends to complete its restructuring as quickly as possible and expects this to be accomplished in 2009.
About Broadstripe:
Based in Chesterfield, Missouri, Broadstripe provides consumers and businesses in Maryland, Michigan, Washington and Oregon with access to integrated video, broadband and home phone services. Further information can be found at www.broadstripe.com.
Contacts:
Broadstripe, LLC
CEO
Gustavo Prilick, 636-534-7104