StarBand Seeks Emergence from Chapter 11 by Year's End

StarBand, a provider of two-way satellite Internet services, filed its reorganization plan with the U.S. Bankruptcy Court in Delaware. The company is seeking an emergence from Chapter 11 status before the end of the year. Starband said its capital structure has significantly improved with the conversion of approximately $113 million of bank 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 including $7 million in additional financing. Since filing for Chapter 11 bankruptcy protection on 31-May-2002, Starband has expanded a new nationwide sales channel now comprised of over 2,400 independent dealers, and launched its fourth generation CPE and service. The new StarBand 480 Pro service offers downloading at up to 1 Mbps and uploads at 100 kbps.
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