Bankrupt TerreStar's Shareholders Slam Elektrobit Claims

Law360, New York (November 18, 2011, 3:07 PM EST) -- Mobile phone service provider TerreStar Corp.'s shareholders asked a judge Wednesday to stop creditor Elektrobit Inc. from pursuing $27.9 million in claims against bankrupt subsidiary TerreStar Network, saying the engineering business made changes to a contract without the parent company's consent.

Harbinger Capital Partners LLC, Highland Capital Management LP and Solus Alternative Asset Management LP — the three preferred shareholders of TerreStar Corp. — filed a joint objection to Elektrobit's $27.9 million claim in New York bankruptcy court.

TerreStar Corp. is the parent company of TerreStar...
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