US wholesale backhaul provider FiberTower has filed a voluntary petition under the Chapter XI bankruptcy code, looking to undergo a radical reorganization while protected from its creditors. It plans to emerge with three business units ‘ the legacy wireless backhaul network plus spectrum services and carrier services ‘ and free of long term debt.
During the Chapter X1 process, FiberTower intends to run “business as usual”, operating its microwave network, and paying salaries and bills incurred ‘post-petition’.
It was once seen as the new face of the LMDS spectrum (in 28-31GHz), which gained a bad name after it was used for several disastrous broadband access ventures at the end of the last century. FiberTower spotted the US wireless backhaul boom early and was founded with backing from three major cell tower owners ‘ Crown Castle, SpectraSite and American Tower ‘ and venture capitalists. And it saw the potential to turn LMDS frequencies to mobile backhaul use, acquiring one of the failed operators, Teligent/First Avenue, while another, NextLink, was taken over by XO Communications.