After a rocky start to the year, an internet provider is doubling down on DC with a new restructuring plan.
Starry Group Holdings, a fixed wireless developer and internet service provider (ISP), completed its restructuring after filing for Chapter 11 bankruptcy. A restructuring plan was confirmed in May, which included new exit funding and restructuring of debts. Now, the company says it has a “clear pathway to profitability.”
“Our goal in the Chapter 11 restructuring process was to preserve the business and operations, reduce our company debt and restructure the business for continued success,” CEO Alex Moulle-Berteaux told Technical.ly in an email. “Now, we are a leaner and more efficient company poised for growth and we remain laser-focused on delivering a customer experience that delights and distinguishes Starry from its competitors.”
With the restructuring, the company will now be privately held. The company’s stock has also stopped trading on the over-the-counter market. Cofounder Chet Kanojia and Moulle-Berteaux will now join the board of directors. With the reorganization, the Boston-headquartered company completed a workforce reduction and is now refocusing on its core markets: DC, Boston, New York City, Denver and Los Angeles.
The company will also be expanding access to Starry Connect, its digital equity program for families in public and affordable housing communities. Moulle-Berteaux said the company will continue making Starry Connect available and is always looking to partner with more public and affordable housing owners to expand the program’s reach. Since launching Starry Connect in 2018, he said the program now reaches 87,000 public and affordable housing units in six states.
“Internet access is not a luxury, it’s a necessity. So, we are emerging from the Chapter 11 restructuring process at a time where the consumer demand for broadband remains strong,” Moulle-Berteaux said. “But, the reality is: Most consumers have one choice in internet service providers, meaning they get stuck paying higher prices for poor service.”
The company filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code in February of this year. The company continued operations through the restructuring process and May’s confirmation.
Going forward, Moulle-Berteaux said that the company hopes to continue growing and supporting fast, affordable connections in the district.
“We will continue to grow and expand our footprint across the metro area,” Moulle-Berteaux said.
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