Chapter 11 Restructuring Process FAQ
Feb 21st, 2023
Starry announced its intention to restructure and strengthen the business by voluntarily filing a pre-arranged Chapter 11 restructuring, with the support of its lenders. Here is what you need to know:
Is Starry going out of business?
No. Starry is NOT going out of business.
Starry’s operations in its five core markets (Boston, New York City, Los Angeles, Denver and Washington, DC) will continue as normal. We remain laser-focused on delivering the experience our customers expect and love.
What exactly did Starry just announce?
Some background: In October 2022, Starry announced that it had hired an investment bank to advise the Company and its Board of Directors on mergers and acquisitions, capital raising, and balance sheet solutions. After exploring available strategic alternatives and taking the necessary steps to conserve capital and reduce expenditures, Starry determined that the best path forward in this current economic climate was to file voluntary petitions for Chapter 11 Bankruptcy protection. Starry did so with the support of its lenders, detailed in a Restructuring Support Agreement and related financing agreements, which will allow Starry to continue providing its customers with the same great internet service that has come to define the Starry experience.
Taking these important steps allows Starry to continue business as usual while it works to reduce the company’s debt and optimize the company’s capital structure, ensuring that Starry will be a stronger business in the years to come.
During this process Starry will continue normal operations, with no disruption to service for existing and new customers.
You can read the full announcement details here: https://starry.com/press.
How is this going to impact my internet service?
There is no impact to your Starry Internet service. You will continue to receive the same great internet service and customer care that you’re accustomed to.
How long will this restructuring process take?
The Company is seeking Court approval of an expedited restructuring process. At this time we cannot put an exact date on completion of the restructuring but will have updates on the timing of Starry’s expected exit from Chapter 11 soon.
Is Starry going to remain a public company?
Once Starry completes the restructuring process and exits Chapter 11, Starry will be a privately-held company.
What happens to shareholders?
The rights and recoveries for all parties involved will be dictated by the Chapter 11 process, and it is likely equity holders could face a significant or total loss in their investment. We cannot provide you advice in this matter; any questions you have regarding your investment would best be directed towards your personal financial advisor or legal counsel.
Are my internet service rates going to increase?
Starry remains laser-focused on delivering the best internet service experience to our customers. That includes transparent and affordable pricing.
We may launch new plans and service tiers and add additional service options and products for our customers to choose from in the future. Any changes or new product offerings will be communicated clearly and transparently to all our customers.
Who do I contact if I have more questions?
If you have questions about your Starry Internet service, please reach out to our Starry Customer Care team, available 24/7 at firstname.lastname@example.org or (888) 231-9403.
Interested parties who may have questions related to the restructuring may call (866) 480-0830 (U.S./Canada) or (781) 575-2040 (International). Court filings and other documents related to the Company's financial restructuring are available at www.kccllc.net/Starry.
I’m a journalist and would like to speak with Starry about this announcement. Who do I reach out to?
All media inquiries should be directed to Virginia Lam Abrams and Mimi Ryals at email@example.com.