Liberty Satellite & Technology has exercised its right to terminate the previously announced agreement to restructure Astrolink, the planned next-generation global broadband satellite network. Liberty Satellite acquired 31.5% of Astrolink in March 2000, with the remainder owned directly or indirectly by Lockheed Martin, Northrop Grumman, and Telespazio.
As a result of the termination of the restructuring agreement, Liberty Satellite will receive $7.8 million in cash in exchange for its equity interest in Astrolink and for all notes evidencing loans made by Liberty Satellite to fund Astrolink’s continuing operations during the period that the restructuring agreement was pending. In addition, all claims related to Astrolink among its equity holders and creditors have been released or settled.
http://www.libertysatellite.net/http://www.astrolink.com/
- Astrolink was formed in 1999 to establish and operate a global communications system to deliver next-generation broadband service.
In November 2001, both TRW and Lockheed Martin announced that they were halting further investment in Astrolink.
In May 2002, Liberty Satellite & Technology, Lockheed Martin, TRW and Telespazio S.p.A. agreed to a proposed restructuring of Astrolink. The restructuring plan proposed a settlement of all claims among the parties and their affiliates relating to Astrolink and the acquisition of all the assets of Astrolink by Liberty Satellite. Subject to consummation of the transactions and any necessary regulatory approvals, Liberty Satellite said it planned to pursue a revised operating plan for a new Astrolink system, taking into account current financial and market factors.
