A telecommunications company and most of its affiliates have turned toward bankruptcy. The filing comes as the company plans to sell its assets to Oaktree Capital Management. The company aims to curb its debt, improve its finances, and secure resources for existing broadband customers.
Note: A Chapter 11 bankruptcy filing is a legal process that allows a business to reorganize its debts, restructure obligations, and continue operating while working toward financial stability. Under Chapter 11, a debtor typically proposes a plan to repay creditors over time, subject to court approval. A Chapter 11 filing does not necessarily mean a business is closing or going out of business. For additional information, readers are encouraged to contact the business directly.
Overview of the Filing
RiverStreet Communications of Virginia, Inc. voluntarily initiated the proceedings in the U.S. Bankruptcy Court for the Eastern District of Virginia.
The company provides telecommunications and broadband services to rural and underserved communities. Founded in 1951, it serves customers in more than 67 counties. These are mainly spread across three states, including Virginia and North Carolina.
Its services cater to residential and business customers for work, healthcare access, education, and other activities.
According to GlobeNewswire, the filing is intended to help the company sell its assets and transfer some unfinished expansion projects to other broadband providers.
The company has entered into an asset purchase agreement with funds managed by Oaktree Capital Management. The proposed sale could strengthen its financial footing, offer improved financial flexibility, and assist its future operations. However, the sale is dependent on court approval, closing conditions, and better offers.
Case Related Details
RiverStreet Communications of Virginia, Inc.’s petition includes a consolidated list of creditors with the largest unsecured claims. Some of these, as listed in the PACER records, are Lambert’s Cable Splicing Co., Complete Underground, LLC, Whiting Construction Co. Inc., Quanta Telecommunications Solutions, LLC, and Electricom.
Stuart Kaufman, who is mentioned as the chief restructuring officer, signed the petition before it was filed.
A summary of the Chapter 11 petition is shared here:
- Filing Date: October 21, 2026
- Court and Jurisdiction: U.S. Bankruptcy Court for the Eastern District of Virginia
- Type of Filing: Active, Voluntary Petition
- Chapter: 11
- Case Number: 26-72823-FJS
- Estimated Assets: Between $100,000,001 and $500 million
- Estimated Liabilities: Between $100,000,001 and $500 million
- Estimated Creditors: Between 200 and 999
Several affiliated entities of the company have made their separate filings in the court, according to Pacermonitor. These include:
- Amelia Telephone Corporation
- Barnardsville Telephone Company
- Electronics Service Co. of Hamlet, LLC
- Ellerbe Telephone Company
- New Castle Telephone Company
- Peoples Mutual Telephone Company
- RiverStreet Communications of North Carolina, Inc.
- Riverstreet Connections, LLC
- Riverstreet Intermediate Holdings, LLC
- RiverStreet Management Services, LLC
- RiverStreet Networks, Inc.
- RiverStreet Parent Holdings, LLC
- RiverStreet Wireless Assets, LLC
- RiverStreet Wireless of North Carolina, Inc.
- RiverStreet Wireless of Virginia, Inc.
- Saluda Mountain Telephone Company
- Service Telephone Company
- Tri-County Communications, Inc.
- Wilkes Communications, Inc.
- Wilkes Telephone Membership Corporation
Proposed Oaktree Deal Includes $20 Million in New Financing
Oaktree’s senior vice president Evan Kramer said the company has an established customer base, meaningful network assets, and strong relationships in communities where reliable connectivity remains essential. Oaktree intends to use these strengths while supporting the company’s rural telecommunications and broadband offerings.
The asset sale will proceed under Section 363 of the U.S. Bankruptcy Code. The agreement is not yet final, and other parties may come up with higher or better offers.
As part of the court-supervised process, RiverStreet has received a commitment for approximately $20 million in new financing from its existing lender, CoBank, ACB. If approved by the court, the financing and cash from ongoing operations will help fund the company’s business during bankruptcy proceedings.
RiverStreet has also filed customary first-day motions seeking authorization to continue paying employee wages and benefits. The company further hopes to pay vendors and suppliers for goods and services provided on or after the filing date. It has appointed Stuart Kaufman, a senior managing director at Areté Partners, LLC, as chief restructuring officer.
Pachulski Stang Ziehl & Jones LLP is appointed as legal counsel, Guggenheim Securities, LLC is the investment banker, and Joele Frank, Wilkinson Brimmer Katcher is the strategic communications advisor.
For Oaktree, Milbank LLP is serving as legal counsel.
Company Refocuses on Existing Broadband Network
The company is following a Modified Build Plan that focuses on its existing customers and network. It plans to maintain its current networks and finish construction projects that are close to completion.
Some unfinished expansion projects may be transferred to other broadband providers. RiverStreet said it will work with government agencies and other providers on the transitions, including their potential effects on underserved communities.
The company said that its broadband and telecommunications services will continue normally for existing customers during the proceedings. Along with this, customer support will also be offered as usual.
