StarBand has become StarBust! Any comments?
I suspect the news was largely expected and reflected in GILTF's price. Any thoughts on what happens from here?
SOURCE: Gilat Satellite Networks Ltd.
Gilat Issues Statement On Developments At StarBand
PETAH TIKVA, Israel--(BUSINESS WIRE)--June 3, 2002--Gilat Satellite Networks Ltd. (Nasdaq: GILTF - News), a worldwide leader in satellite networking technology, announced today that StarBand, America's leading consumer high-speed, two-way satellite Internet provider, filed a petition for Chapter 11 reorganization with the U.S. Bankruptcy Court in Delaware.
As part of the reorganization, Gilat stated that it has committed $2.8 million in debtor-in-possession (DIP) financing.
Gilat stated that StarBand's voluntary Chapter 11 filing is intended to provide StarBand time to restructure its existing debt obligations as it seeks to attract new equity investment to fund its operating and capital requirements. Gilat also stated that StarBand has applied for immediate court approval of the DIP financing and that StarBand intends to implement a number of cost-saving programs during the reorganization.
Gilat said that StarBand's ongoing customer and dealer operations are up and running.
About Gilat Satellite Networks Ltd.
Gilat Satellite Networks Ltd., with its global subsidiaries Spacenet Inc. and Gilat Latin America, is a leading provider of telecommunications solutions based on Very Small Aperture Terminal (VSAT) satellite network technology - with nearly 400,000 VSATs shipped worldwide. The Company provides satellite-based, end-to-end enterprise networking and rural telephony solutions to customers across six continents, and markets interactive broadband data services. The Company is a joint venture partner with SES Global and, upon closing and following regulatory approval, Alcatel Space and SkyBridge, subsidiaries of Alcatel, in providing two-way satellite broadband services in Europe. Skystar Advantage®, Skystar 360E (TM), DialAw@y IP(TM) and FaraWay (TM) are trademarks or registered trademarks of Gilat Satellite Networks Ltd. or its subsidiaries. Visit Gilat at www.gilat.com.
Certain statements made herein that are not historical are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. The words "estimate", "project", "intend", "expect", "believe" and similar expressions are intended to identify forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties. Many factors could cause the actual results, performance or achievements of Gilat to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements, including, among others, changes in general economic and business conditions, inability to maintain market acceptance to Gilat's products, inability to timely develop and introduce new technologies, products and applications, rapid changes in the market for Gilat's products, loss of market share and pressure on prices resulting from competition, introduction of competing products by other companies, inability to manage growth and expansion, loss of key OEM partners, inability to attract and retain qualified personnel, inability to protect the Company's proprietary technology and risks associated with Gilat's international operations and its location in Israel. For additional information regarding these and other risks and uncertainties associated with Gilat's business, reference is made to Gilat's reports filed from time to time with the Securities and Exchange Commission.
The SkyBlaster 360 product is marketed by StarBand Communications under its own brand name. |
