Broadstripe Turns to Chapter 11
Broadstripe, formerly known as Millennium Digital Media, is trying to turn the ship around and work things out with its creditors. Citing court documents, Multichannel News notes that Broadstripe owes more than $331 million to its controlling investor, Highland Capital Management. It owes another $46 million to other creditors.
The MSO, which has about 93,000 subs in parts of Oregon, Maryland, Michigan, and Washington, reported having assets in the range of $100 million to $500 million.
Broadstripe president and CEO Gustavo Prilick tried to reassure customers in a statement that the MSO is "committed to serving you through the reorganization process."
The company said it tends to operate in a "normal fashion" and continue network upgrades even as it attempts to reorganize the operation and restructure its debt. Broadstripe hopes to complete the restructuring sometime in 2009, but wasn’t more specific.
In conjunction with the filing, some of the MSO's existing lenders have agreed to provide Broadstripe with up to $15 million in debtor-in-possession financing. The MSO also hired FTI Consulting Inc. as its turnaround manager, and appointed Stephen Dubé, a senior managing director of the firm, as its chief restructuring officer.
— Jeff Baumgartner, Site Editor, Cable Digital News