TerreStar Networks filed a voluntary Chapter 11 bankruptcy petition aimed at strengthening its financial position by lessening its debts.
The company also announced an agreement with EchoStar Corporation, its largest secured creditor, that will provide TerreStar with a $75 million debtor-in-possession financing facility. TerreStar Networks will use the debtor-in-possession financing to maintain business-as-usual operations during the restructuring process. EchoStar has agreed to support a restructuring premised on a debt for equity conversion by the Debtors’ secured noteholders, and backstop a $100 million rights offering that will provide the funding for TerreStar Networks’ exit from chapter 11.
http://www.terrestar.com
- In September 2010, AT&T has begun marketing a new Satellite Augmented Mobile Service featuring the TerreStar GENUS dual-mode cellular/satellite smartphone. The dual-mode device uses AT&T’s cellular wireless network as the primary default mode and Terrestar’s satellite network as a secondary option for voice, data and messaging. The TerreStar satellite network ensures coverage in remote areas for government, energy, utility, transportation and maritime users, as well as backup satellite communications capabilities for public safety agencies, first responders and disaster recovery groups. The satellite footprint covers the United States, Puerto Rico, U.S. Virgin Islands and territorial waters.