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

Advertisement

Recent Reviews

Brother HL-L8250CDN Color Laser Printer

When it comes to selecting a printer, it's not exactly something most people put a lot of thought into. Printers are often touted as f ...

Moshi iVisor AG and XT for iPad Air 2

Have you ever tried to put in a screen protector that relies on static to cling to the screen? How many bubbles and wrinkles does it h ...

Epson PowerLite Home Cinema 3500 projector

Trying to find the perfect projector for a home theater can be tricky, as there are bountiful options on the market from a large numbe ...

Advertisement

toggle

Most Commented

 
toggle

Popular News