TerrrStar Facing Two Objections On Sale Plan

by San Antonio Attorney

TerreStar Networks Inc has to deal with a couple of objections to it sale plan to Dish Network Corp, the second- biggest satellite TV provider in the United States.

Space Systems/Loral Inc, maker of the TerreStar satellite that is orbiting the world right now, filed court papers on Tuesday stating Dish has arranged to pay just a portion of what is due under three satellite agreements.

Under the proposal plan, Dish will have to pay around $5.6 million to provide a “cure” amount, considerably less than the approximately $43 million Space Systems claims it was supposed to pay, based on the court papers filed.

According to Space Systems, it is trying to resolve the matter with TerreStar. However, it filed the objection on the sale plan in order to protect its rights should the discussions falter.

The other party that objected on the sale plan is AT&T Corp, which markets Genus satellite smartphones of TerreStar. It filed the objection before the deadline on Tuesday.

AT&T believes that the sale plan could keep it from seeking compensation from TerreStar for the damage claims of customers that were filed against AT&T because of the TerreStar phone problems.

TerreStar, which promoted Genus satellite smartphone, was in demand because of its approximately 20 MHz of spectrum. The company filed for Chapter 11 bankruptcy protection in October 2010 with over $1 billion in debt. Dish Network Corp acquired TerreStar for a minimum bid of $1.375 billion on June 15 and there were no competing bidders.

If the sale plan is approved, it would become Dish Network’s third biggest acquisition so far this year, as it also acquired DBSD North America for $1.4 billion and Blockbuster Inc for $320 million.

The confirmation hearing before Bankruptcy Judge Sean Lane is scheduled on Thursday.

 

-      It common for some to assume that anyone who is licensed to practice law can be called upon to provide assistance for bankruptcy law and filing. However, it is important to retain a San Antonio bankruptcy attorney who has specialized experience in the bankruptcy area, just like big companies retaining an attorney with successful history of handling bankruptcy law cases, to make sure that the attorney is qualified to handle your legal needs.

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