Judge Approved DBSD Sale Plan

by San Antonio Attorney

Creditors of the reorganized DBSD North America have been given a go-signal by a New York bankruptcy court judge to vote on the $1.4 billion sale plan to Dish Network Corp, according to a DBSD attorney.

Last Monday, the proposal was approved by Judge Robert E. Gerber at the U.S. Bankruptcy Court in Manthattan, and the confirmation hearing is scheduled on June 30, said Ryan Bennet of Kirkland & Ellis.

A $280 million of amount repayments will be given to creditors and equity holders out of the sales proceeds. The sale agreement with Dish Network, the third largest pay-TV provider in the U.S., would add to the expansion of billionaire Charlie Ergen’s satellite empire.

Ergen owns a satellite fleet and set-top-box manufacturer EchoStar Corp, has acquired Blockbuster Inc. movie rental chain, and is a huge creditor of bankrupt TerreStar Networks Inc, a bankrupt telecommunications firm.

DBSD filed for Chapter 11 bankruptcy protection on May 15, 2009 due to the problems brought on by the financial crisis. The satellite and land-based communications company scheduled a total of $813 million of debts.

The creditors of DBSD are given up to June 17 to file objections and should vote on the sale plan by June 22.

According to Bennet, there are no pending objections on the deal and the company expects that the sale plan will be carried out without a lot of controversy.

There was no immediate return of a call to ask for a comment from the creditors committee attorney.

The case is In re DBSD North America Inc, U.S. Bankruptcy Court, Southern District of New York, No. 11-13061.

For DBSD: James H.M. Sprayregen and Ryan B. Bennett of Kirkland & Ellis LLP and Marc Jason Carmel of Paul Hastings Janofsky & Walker LLP.

More Court approved plans can be found in the San Antonio bankruptcy section.

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