Starry Files Voluntary Chapter 11 Petitions to Reorganize, Backed by Restructuring Support Agreement with Lenders

Starry, a licensed fixed wireless technology developer and internet service provider, and its US affiliates and subsidiaries announced that they have filed voluntary petitions for relief under Chapter 11 of the US Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware and have entered into a Restructuring Support Agreement (the “RSA”) with lenders holding the Company’s debt. The RSA contains agreed-upon terms for a pre-packaged financial restructuring plan that is expected to significantly reduce the Company’s debt, optimize the Company’s capital structure and liquidity, and ultimately, better position Starry for success. Starry’s customer and network operations during this restructuring process will continue as normal within its five core operating markets: Boston, New York City, Los Angeles, Denver, and Washington, DC. The Company plans to move swiftly through the restructuring process. The Company has filed various “first-day” motions with the Court requesting customary relief, including a motion for approval of a $43 million debtor-in-possession (“DIP”) financing facility that is expected to provide Starry with the necessary liquidity to continue its normal business operations and meet its post-filing obligations to its employees, customers, and vendors. Pursuant to the RSA, the Company anticipates closing on a debt-for-equity restructuring with the lenders but will first conduct a marketing and auction process to identify any other potential bidders for its business. Starry has filed motions seeking Court approval of bidding and auction procedures.