Starry to exit bankruptcy this summer

Boston-based wireless Internet service Starry plans to emerge from bankruptcy this summer with new ownership and a leadership change — but subscribers may not even notice. Under a reorganization plan approved last month by US Bankruptcy Judge Karen Owens in Delaware, existing shareholders will be wiped out and Starry’s lenders will own the company. For customers, however, Starry does not plan to cut back service or raise its current $50-per-month subscription rate, the company said on Tuesday. Cofounder and former chief operating officer Alex Moulle-Berteaux has replaced chief executive and cofounder Chet Kanojia (right). Kanojia, a serial entrepreneur who has run Starry since 2015, remains as a member of the board of directors. Starry will focus on selling service in its five existing markets — Boston, New York City, Los Angeles, Denver, and Washington, D.C. — and not on expanding to more cities for the immediate future, Moulle-Berteaux said in an interview. Starry went through two drastic rounds of layoffs over the past year. It has since done some modest rehiring, with “mild, slow growth” in staffing planned for this year, the incoming CEO said. Starry’s wireless equipment can reach almost 4 million potential customer households in its five current markets, offering the potential for growth without the expense of adding more cities, he said. At last report, in September, Starry had more than 91,000 customers. It has slightly less now after exiting the Columbus, Ohio, market in January, Moulle-Berteaux said. The also provides service to 87,000 units of public housing in Boston, Cambridge, and other cities under government-subsidized efforts to close the digital divide. — AARON PRESSMAN