StarBand to exit bankruptcy


Anyone remember StarBand, the much vaunted two-way high speed satellite based Internet service? Well it is coming out of bankruptcy, according to TelecomWeb. StarBand had filed for bankruptcy in May 2002 and if all goes well the company could be out of bankruptcy protection by end of this month. As part of the restructuring, the company will convert $113 million of debt to equity. In addition, approximately $90 million of debt to Gilat Satellite Networks Ltd. will convert to equity and a $14 million post-emergence note. Further, StarBand and Gilat have entered into a new technology and hardware supply agreement providing for $7.5 million in additional financing.

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