Printed from http://www.electronista.com

TerreStar near bankruptcy despite satellite smartphone intro

updated 03:50 pm EDT, Mon October 18, 2010

TerreStar satellite phones may face bankruptcy end

In spite of just releasing its Genus satellite smartphone, Terrestar may already be on the edge of bankruptcy after a scoop today. The company is reportedly in talks with creditors and could file for Chapter 11 bankruptcy as early as Sunday. The WSJ hints that TerreStar would already have a restructuring plan in place and would have both $75 million to last the reorganization and stock sales to help clear the $1 billion in debt.

Share owners would likely lose out on the deal, but it could potentially keep TerreStar's plans alive. Key investor Harbinger had been an early supporter but has switched its attention to building 4G cellular access.

The company was founded with the aim of making satellite-based smartphones and other devices that could get online from virtually any place on Earth, even when cellular access is completely unavailable. Such services have proven expensive to maintain and saw their most well-known advocate, Iridium, go bankrupt in 1999 after it couldn't get enough subscribers.



By Electronista Staff
toggle

Comments

Login Here

Not a member of the MacNN forums? Register now for free.

toggle

Network Headlines

toggle

Most Popular

Sponsor

Recent Reviews

Tablo DVR

With over-the-top content options growing past Hulu and Netflix, consumers may be finding it harder to justify paying a monthly fee fo ...

Sound Blaster Roar Bluetooth speaker

There could very well be a new king of the hill for Bluetooth speakers, with Sound Blaster's recent entry into the marketplace. Bringi ...

Kenu Airframe Plus

Simple, stylish and effective, the Kenu Airframe + portable car mount is the latest addition to Kenu's lineup. Released earlier this y ...

Sponsor

toggle

Most Commented

 
toggle

Popular News