The extraordinary collapse of the telecommunications industry continues apace. XO Communications has been trying to engineer an infusion of capital from two lenders that would help it survive a planned bankruptcy, but yesterday the lenders made it clear that they’re going to try to pull out of the deal – which might be the final death blow for XO.
Starband Communications has been selling consumer satellite service for the last couple of years. It’s caught up in corporate shenanigans between its parent corporation and Hughes (owner of the competing DirecWay satellite service), as they try to push a merger through the FCC. For the moment, the result is that Starband filed its own Chapter 11 bankruptcy last week. One possibility is that Starband will be abandoned, although that doesn’t seem to be the plan for now.
It’s depressing to watch the death of ATG, too. I knew it was probably having difficult times, but I wasn’t expecting it to collapse so quickly and so thoroughly. If you’re an ATG customer, start making your contingency plans just in case your service is turned off someday. Sure, they’re trying hard to avoid that – but make your plans.
