PITTSBURGH (AP) -- Internet service provider Stargate has filed for Chapter 11 bankruptcy protection, citing more than $20 million in debt, but vowing that it won't interrupt service to customers. "It will be business as usual," said David Lampl, Pittsburgh-based Stargate's bankruptcy attorney. Stargate employs about 240 people, down from 300 a year ago, but company officials said they're not planning any layoffs and don't anticipate problems meeting payroll and expenses. Much of the company's debt stems from loans it took out five years ago in anticipating that its dial-up residential business would expand. That didn't happen, in part, because of increased competition from broadband Internet providers. They provide Internet service in 48 states including western Pennsylvania and Mercer County. Over the years Stargate has bought other area Internet providers such as Pgh.net and ToolCity. |
Questions/comments: online@sharonherald.com Reproduction or retransmission in any form is prohibited without our permission. 030401
|