US rural broadband provider RiverStreet Communications has declared for Chapter 11 bankruptcy. The company, which offers broadband access to approximately 30,000 customers across rural North Carolina and Virginia, verified last week that it has entered into an asset purchase agreement with funds managed by Oaktree Capital Management.
RiverStreet mentioned that the transfer of ownership will substantially fortify the company’s financial base and allocate more means to guarantee its enduring prosperity. According to Inside Towers, the firm was taken off several broadband installation projects due to continuous delays over time.
Consequently, RiverStreet is now executing a Tailored Construction Plan, which centers its activities on its current clientele and geographic scope. Founded in 1951, the firm declared its commitment to preserving its existing networks and completing imminent new constructions. The APA with Oaktree and our present initiatives aim to guarantee the continuation of this objective for future years.
After thorough deliberation by the board of directors and management team, RiverStreet’s CEO, Eric Cramer, expressed confidence in their chosen path as the best option for the company and its stakeholders, such as customers and local communities. Evan Kramer, senior vice president at Oaktree, stated that RiverStreet possesses a strong customer base, valuable network assets, and strong community ties in areas where dependable connectivity is crucial and demand remains steadfast.
We eagerly anticipate expanding upon RiverStreet’s existing strengths, all the while staying faithful to its mission as a top-notch rural telecommunications and broadband service provider. RiverStreet announced that the court-monitored selling procedure will enable a well-organized shift of the expansion ventures it plans to leave.
The company added that it has secured a pledge of roughly $20 million in additional funding from its current lender, CoBank, ACB, to assist with this endeavor. The funds, combined with the money generated by its regular activities, will help RiverStreet throughout this period. Stuart Kaufman has been named as the chief restructuring officer to assist the company during the court-monitored process.
