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Broadstripe Turns to Chapter 11

12:50 PM -- Although Charter Communications Inc. 's tenuous financial future has been front and center for weeks, a much smaller MSO, Broadstripe LLC, grabbed headlines after it filed for Chapter 11 bankruptcy protection in Delaware on Jan. 2.

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

litewate 12/5/2012 | 4:14:57 PM
re: Broadstripe Turns to Chapter 11 How many months of profit would it take to recover this amount of foolish debt? Maybe it's time we let all the fiscally mismanaged companies fail rather than prop them up with more bad financing. It could be time to clean out the barnyard.
Jeff Baumgartner 12/5/2012 | 4:14:54 PM
re: Broadstripe Turns to Chapter 11 Say what? I thought bailing out everyone was a good thing these days. ;)
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