Sting Communications

Client Profile
Based in Lebanon, PA, Sting Communications is a network systems integration company that provides next generation network transport and managed services. With over 2,000 miles of fiber backbone, the Company is a market leader in providing high speed broadband to education, healthcare and enterprise customers in the Mid-Atlantic region. The Company is also uniquely suited to provide network services to rural and underserved communities.
Situation
Although the Company historically operated profitably, payment delays by a customer and negotiations with a fiber optic provider necessitated Sting’s filing for Chapter 11 bankruptcy protection. As a result, the Company’s liquidity was constrained, which caused the Company difficulty in performing to its business plan.
Solution
The Company retained SSG to explore strategic alternatives. SSG conducted a comprehensive marketing process which resulted in a wide range of potential buyers, including multiple strategic and financial parties interested in the Company as a going concern. Global Leveraged Capital Advisors, LLC (“GLC”), the holder of Sting’s subordinated notes, acquired the senior secured debt during the Chapter 11 proceeding and agreed to provide DIP financing as a bridge to the eventual acquisition of the Company’s assets by an affiliate. GLC acquired Sting’s assets through a plan of reorganization that was confirmed by the U. S. Bankruptcy Court for the Southern District of New York and the transaction closed in April, 2014.