Xplore announced Monday that it has closed a recapitalization arrangement, first announced in June, that will see it secure enough money to continue its pursuit of covering more than 400,000 homes with direct fibre by 2027.
While the rural broadband provider does not disclose how much it secured from private lenders, it said it altogether has $1.6 billion of new funding if you include government subsidies.
“This is a significant milestone for Xplore that will provide meaningful benefits to our customers,” Xplore’s Executive Chairman Fran Shammo said in a press release. “We are grateful for the support we have received from the Canadian government and our investors to progress our mission of bringing world-class broadband to as many rural communities as we can, improving connectivity for better everyday living.”
The announcement comes after Xplore filed and was granted this summer an order from an Ontario court that shields the telecom from creditors – including satellite companies that it hasn’t paid for services to its 80,000 satellite internet customers – as it navigates a restructuring to reduce its debt.
Telesat and Hughes have brought actions in court requesting orders for Xplore to pony up what is owed or allow them to cut services. Hughes would like to bring a bankruptcy action against the provider.
