Broadstripe, a provider of integrated video, broadband and home phone services, and its affiliates have filed voluntary petitions for relief under chapter 11 of the US Bankruptcy Code in the US Bankruptcy Court for the District of Delaware.
Concurrently with the chapter 11 filing, Broadstripe engaged FTI Consulting, a business advisory firm, as its turnaround manager. It named Stephen Dube, a senior managing director of FTI, as its chief restructuring officer.
According to the company, 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 $15m in debtor-in-possession financing.
Gustavo Prilick, CEO of Broadstripe, 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.