e-xpedient/CAVU seeks investors to emerge from Chapter 11

Fixed broadband wireless competitive service provider e-xpedient/CAVU is trying to run business as usual while it sorts out the intricacies of Chapter 11, including finding the funds needed to continue in a reorganization, company executives said.

The Orland-based company has two months to devise a reorganization strategy to continue operating as a commercial high-speed data provider.

Two markets, Oklahoma City and Jacksonville, Fla., will be shut down because they cannot be self-supporting. The company is making money in four other markets--Salt Lake City, Cleveland, Orlando and Miami--where it will continue to operate.

“We have four profitable markets right now. We were told last year by the venture-capital world that, if we had profitable markets, we’d be worth a fortune, because no one else ever had a profitable market,” Andrew said.

Things changed. Those same venture capitalists are no longer interested in long-term investments and CLECs are no longer capable of returning quick stock values.

“This left us high and dry trying to find utility-type investors who are willing to put some money to work for 10 years and are looking for some good dividends and cash flow and paying bills,” Andrew said.

Meanwhile, the company continues to run networks that use 38 and 60 GHz fixed broadband wireless technology mixed with free space optics to deliver 100 megabit-per-second [M/bps] data to commercial customers at prices ranging from $100 to $5,500 per month, Andrew said.

“Right now, we’re full service for our customers,” he said. “It depends on the creditors how long we stay, but we’re certainly depending on the next couple months.”

In addition to seeking a long-term funding source, the company is also waiting for a payout from an international investor.

“That’s been committed since April, but, with the international markets being a little bit impacted and a little bit slower now, that hasn’t turned up when we expected it,” Andrew said.

As part of the Chapter 11 filing, which occurred Nov. 30, e-xpedient/CAVU laid off an undisclosed number of employees Nov. 26.