DBSD advisor Jefferies eyes recovery of $2.9 million transaction fee

By Lisa Kerner

Charlotte, N.C., June 1 - DBSD North America, Inc.'s investment banker and financial advisor Jefferies & Co., Inc. asked the court for an order partially restoring its original transaction fee in the amount of $2.9 million, according to a Wednesday filing with the U.S. Bankruptcy Court for the Southern District of New York.

A hearing is set for June 30, the same date as the hearing to confirm the company's plan of reorganization.

The transaction fee is a portion of the $5 million that Jefferies agreed to discount in July 2009 when the circumstances of DBSD's restructuring "were comparatively dire," the filing said.

"The debtors are now on the eve of confirming a reorganization plan, based on a valuation of approximately $1.5 billion, which will provide full cash recovery to the debtors' senior noteholders and all holders of unsecured claims, plus approximately $325 million to equity," the filing said.

When the case was filed in 2009, the midpoint enterprise value stood at about $600 million, according to the motion.

DBSD is a subsidiary of ICO Global Communications (Holdings) Ltd., a Reston, Va., mobile satellite services company. The subsidiary filed for bankruptcy on May 15, 2009. Its Chapter 11 case number is 09-13061.

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