09/07/2009 | GigaBeam files for Chapter 11 protection |
GigaBeam Corp. said Friday that it voluntarily filed for Chapter 11 bankruptcy protection. The wireless communications equipment maker expects to emerge from bankruptcy protection before the year ends. The filings were made on Sept. 2 in a Delaware bankruptcy court. The company said its senior investors support the move. Their senior secured notes make up the majority of GigaBeam's outstanding debt. The company said its senior investors promised to provide adequate debtor-in-possession financing to support GigaBeam during the restructuring process. GigaBeam plans to use financing proceeds, along with cash from daily operations, to pay for expenses like employee wages and benefits and other operating expenses. The company said it had already been working on reducing costs: Since 2007, GigaBeam has cut its operating and administrative costs almost in half. |
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