Elektrobit Blasts TerreStar Ch. 11 Disclosures

Law360, New York (September 6, 2011, 7:50 PM EDT) -- Creditor Elektrobit Inc. objected to disclosures for TerreStar Corp.’s Chapter 11 plan in New York bankruptcy court on Friday, arguing that the parent of the satellite phone maker failed to explain the lopsided influence stockholders are exerting in the reorganization process.

The Finish engineering company — one of TerreStar’s largest unsecured creditors — said the disclosure statement for the restructuring plan should not be approved until several inconsistencies are addressed, including those involving preferred shareholders Harbinger Capital Partners LLC, Highland Capital Management and others.

“Elektrobit would...
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