Printed from http://www.electronista.com

Satellite phone carrier TerreStar declares bankruptcy

updated 10:10 am EDT, Wed October 20, 2010

TerreStar files for Chapter 11 bankruptcy

As expected, satellite phone maker and carrier TerreStar Networks has filed for Chapter 11 bankruptcy, according to a Tuesday report. The company and 12 of its affiliates had more than $1 billion of liabilities, with $1.4 billion of assets and $1.64 billion of liabilities as of June 30. TerreStar's largest secured creditor, satellite TV provider EchoStar, will help TerreStar with $75 million of operating capital to keep it working through the bankruptcy.

EchoStar will also support a debt-for-equity restructuring and $100 million rights offering to help it safely exit Chapter 11 protection.

TerreStar launched its first satellite, TerreStar-1, in July 2009, and has been building a second, TerreStar-2. In September, it launched the Genus satellite smartphone at AT&T. Such devices have usually found acceptance difficult since they carry an access premium over regular cellphones and are mostly useful in remote areas where no cell service exists.



By Electronista Staff
Post tools:

TAGS :

toggle

Comments

Login Here

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

toggle

Network Headlines

toggle

Most Popular

Sponsor

Recent Reviews

Logitech Hyperion Fury mouse

Selecting the correct gaming mouse comes down to finding a device that balances the needs of a user with a price they can afford. Ofte ...

Life n Soul BM211 Bluetooth speaker

Bluetooth speakers aren't only for listening to some music at the park or on a long bus ride, but can also be built with tablets in mi ...

Epson PowerLite Home Cinema 2030 projector

With high-definition televisions now the standard, 4K televisions becoming the next big thing, and plasma TVs going the way of the din ...

Sponsor

toggle

Most Commented

 
toggle

Popular News