Steve Mehs
10-30-02, 04:14 AM
WSNet Holdings, the Austin, Texas,-based company that delivers a satellite-based video service to small and rural cable operators, has filed for Chapter 11 bankruptcy reorganization.
According to reports on the reorganization filing, WSNet said it has assets of $10 million to $50 million and debts of $50 million to $100 million. Despite repeated phone calls, representatives from the company were not available for comment. However, it appears to be business as usual at WSNet, with the company answering its phones and Web site still in operation.
An article from the Austin American Statesman said WSNet landed in bankruptcy court despite raising more than $80 million from venture capitalists during the past three years, including $30 million in 2001 when it hired several new executives in sales and operations. WSNet also landed a $52 million investment from a group that included Motorola, which makes set-top boxes for WSNet's services.
Earlier in the year, WSNet was very vocal about the pending merger between EchoStar and DirecTV. The company asked the Federal Communications Commission to require a merged satellite TV entity to forfeit spectrum to competitor, including WSNet. WSNet said it would use that spectrum for a wholesale satellite TV service, which would be supplied to rural cable TV systems, retail service providers and other competitive retail multichannel providers.
From SkyReport (http://www.skyreport.com/skyreport/oct2002/103002.shtm#one) (Used with Permission)
According to reports on the reorganization filing, WSNet said it has assets of $10 million to $50 million and debts of $50 million to $100 million. Despite repeated phone calls, representatives from the company were not available for comment. However, it appears to be business as usual at WSNet, with the company answering its phones and Web site still in operation.
An article from the Austin American Statesman said WSNet landed in bankruptcy court despite raising more than $80 million from venture capitalists during the past three years, including $30 million in 2001 when it hired several new executives in sales and operations. WSNet also landed a $52 million investment from a group that included Motorola, which makes set-top boxes for WSNet's services.
Earlier in the year, WSNet was very vocal about the pending merger between EchoStar and DirecTV. The company asked the Federal Communications Commission to require a merged satellite TV entity to forfeit spectrum to competitor, including WSNet. WSNet said it would use that spectrum for a wholesale satellite TV service, which would be supplied to rural cable TV systems, retail service providers and other competitive retail multichannel providers.
From SkyReport (http://www.skyreport.com/skyreport/oct2002/103002.shtm#one) (Used with Permission)