UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
CURRENT REPORT
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| Item 8.01 | Other Events. |
As previously announced by Starry Group Holdings, Inc. (the “Company”), on August 31, 2022, the Federal Communications Commission (“FCC”) issued a Ready to Authorize Public Notice pursuant to which the FCC announced it was ready to authorize Rural Digital Opportunity Fund (“RDOF”) support for the Company’s winning bids in Auction 904 for eight of the nine states for which it won support. On September 21, 2022, the Company submitted irrevocable stand-by letters of credit and a bankruptcy code opinion letter from legal counsel for bids won in the RDOF auction amounting to approximately $17 million as required as a condition for the FCC to authorize receipt of support. As a result, the Company was eligible to receive approximately $170 million of RDOF funding, payable over 10 years.
On October 12, 2022, the Company notified the FCC that it was defaulting on all of its winning bids in the RDOF auction for which the FCC had notified the Company it was ready to authorize. On the same day, the FCC issued a public notice that included a statement explaining that the Company had defaulted on all these bids. As a result of the Company defaulting on the bids, the Company terminated the $17 million of stand-by letters of credit it submitted for the FCC to authorize receipt of support for such bids. The Company made this decision in order to maximize liquidity while it continues efforts to raise additional capital; to sharpen its focus on its core mission of providing competitive broadband services primarily in dense areas; and in light of changed circumstances in the marketplace since its original decision to participate in the auction in 2020, including additional government subsidy programs that have or may target the same areas for which it won subsidy support in RDOF.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| Starry Group Holdings, Inc. | ||||||
| Date: October 17, 2022 | By: | /s/ Chaitanya Kanojia | ||||
| Name: | Chaitanya Kanojia | |||||
| Title: | Chief Executive Officer | |||||