Broadstripe Files Chapter 111/05/2009 11:17 AM Eastern
Broadstripe Communications, the former Millennium Digital Media, filed for Chapter 11 bankruptcy protection in Delaware, but said in a statement that it continues to talk with creditors about refinancing its debt.
Broadstripe, which changed its name from Millennium Digital Media in 2007 , filed for Chapter 11 protection on Jan. 2 in U.S. Bankruptcy Court for the District of Delaware. In the filing, Broadstripe lists Highland Capital Management—its controlling investor—as its largest creditor, owed more than $331 million. Other creditors include Credit Suisse International (owed $28.8 million); JP Morgan Chase ($13.6 million) and National Bank TV Co-Op ($3.6 million) according to bankruptcy court documents.
Broadstripe has about 93,000 subscribers in systems in Michigan, Maryland, Washington and Oregon. In 2006, after a capital infusion from Highland Capital, the company embarked on an acquisition strategy, agreeing in November 2007 to buy James Cable for $125 million. But that deal apparently never closed.
In the filing, Broadstripe estimated that it had assets worth between $100 million and $500 million and liabilities of between $100 million and $500 million.
According to the filing, Broadstripe named FTI Consulting senior managing director Stephen Dubé as its chief restructuring officer to help with the turnaround.
In a statement posted on the company’s Web site, Prilick said the company filed for Chapter 11 protection to strengthen its balance sheet and to restructure its financial obligations. The CEO added that the process is expected to take a period of months but should be completed in 2009. The company has secured about $15 million in debtor-in-possession financing from affiliates of Highland Capital to allow it to continue to operate smoothly during the process, according to bankruptcy court documents.
“Broadstripe’s agreement with its lenders affords us a significant head-start and gives Broadstripe a clear path toward exiting Chapter 11,” Prilick said in the statement.