Steve Mehs
02-19-03, 05:11 AM
WSNet, the Austin, Texas,-based company that delivers satellite-based video services to MDUs and small and rural cable operators as well as operating a C-Band business, will cease operations on Feb. 28, after 20 years in the business.
In a letter sent to its customers, WSNet COO Stuart Lefkowitz said an inability to secure new funding forced the company to terminate its business at the end of the month. WSNet transmissions from Loral's Telstar 6 satellite will be discontinued on that day, and the company is actively shopping its C-Band business and other assets.
WSNet's Randy Yonkers said there's a lot of interest in the C-Band business. What happens with the company's big dish product will be determined at a bankruptcy hearing scheduled for Feb. 27.
Late last year, WSNet filed for Chapter 11 bankruptcy reorganization. According to October 2002 reports on the company's reorganization filing, WSNet said it had assets of $10 million to $50 million and debts of $50 million to $100 million.
Lefkowitz said in his letter that a customer stepped up and provided funding for the company to operate through the end of the month, but didn't exercise an option to provide more money for March.
"We realize that the industry that we have proudly served for 20 years has become very reliant on our services and that for many of you this announcement will incur a great deal of hardship for your business," Lefkowitz said in his letter. "In spite of our best efforts to make WSNet a viable entity, we have not been able to reach that critical mass of customers that makes our digital platform successful."
From SkyReport (http://www.skyreport.com/skyreport/feb2003/021903.shtm#one) (Used with Permission)
In a letter sent to its customers, WSNet COO Stuart Lefkowitz said an inability to secure new funding forced the company to terminate its business at the end of the month. WSNet transmissions from Loral's Telstar 6 satellite will be discontinued on that day, and the company is actively shopping its C-Band business and other assets.
WSNet's Randy Yonkers said there's a lot of interest in the C-Band business. What happens with the company's big dish product will be determined at a bankruptcy hearing scheduled for Feb. 27.
Late last year, WSNet filed for Chapter 11 bankruptcy reorganization. According to October 2002 reports on the company's reorganization filing, WSNet said it had assets of $10 million to $50 million and debts of $50 million to $100 million.
Lefkowitz said in his letter that a customer stepped up and provided funding for the company to operate through the end of the month, but didn't exercise an option to provide more money for March.
"We realize that the industry that we have proudly served for 20 years has become very reliant on our services and that for many of you this announcement will incur a great deal of hardship for your business," Lefkowitz said in his letter. "In spite of our best efforts to make WSNet a viable entity, we have not been able to reach that critical mass of customers that makes our digital platform successful."
From SkyReport (http://www.skyreport.com/skyreport/feb2003/021903.shtm#one) (Used with Permission)