UPDATE: Winstar Video Not Part of Parent’s Chapter 1118 Apr, 2001 By: Stephanie Prange
Winstar TV & Video is not included in today’s Chapter 11 bankruptcy filing of parent Winstar Communications, according to subsidiary president Al Cattabiani.
Winstar TV & Video’s business is strong and the subsidiary is "self-financed," Cattabiani says.
"We are continuing to operate unchanged," he says, adding things are "business as usual."
Cattabiani says the video and TV arm will "maintain [its] release schedule."
"There are a lot of implications of Chapter 11," he says. "When a company goes into Chapter 11, it’s basically asking for a time-out. One of implications is debts prior to the filing are not paid until [the court reviews things]. We are continuing to pay our bills. We are not subject to the time-out.
"We plan to operate as we have."
Winstar Communications today filed for Chapter 11 bankruptcy protection, blaming Lucent Technologies for violating an agreement andforcing the filing. Winstar also has filed a $10 billion lawsuit against Lucent.
The Nasdaq on Wednesday halted trading of Winstar shares, which closed at $14 the day before.
In its bankruptcy filing, Winstar said it had arranged for $75 million of financing with a group of banks to allow it to keep running normally.
Earlier this month, the company laid off 2,000 of its 4,700 workers.
None of the layoffs occurred in the TV & Video subsidiary.