Satellite Smartphone Maker TerreStar Files For Ch. 11

Law360, New York (October 19, 2010, 7:25 PM EDT) -- TerreStar Networks Inc., maker of the first satellite smartphone, filed for Chapter 11 protection Tuesday with plans to pursue a debt-for-equity conversion to reduce its more than $1 billion in liabilities.

TerreStar and 12 affiliates filed a petition in the U.S. Bankruptcy Court for the Southern District of New York, after entering into a restructuring support agreement with EchoStar Corp., the company's largest secured creditor.

Parent firm TerreStar Corp., which is not part of the filing, said EchoStar had agreed to support a plan involving a...
To view the full article, register now.