TerreStar sells remaining interest in SkyTerra

By Lisa Kerner

Charlotte, N.C., Sept. 16 - TerreStar Corp. sold its remaining 29,926,074 shares of non-voting common stock of SkyTerra Communications, Inc. for a total of approximately $123 million.

Affiliates of Harbinger Capital Management purchased 23,626,074 shares for proceeds of approximately $97 million, and the remaining 6.3 million shares were sold to other purchasers for net proceeds of approximately $26 million, TerreStar said.

Proceeds will be used for working capital and general corporate purposes, a TerreStar news release said.

"We are pleased that this working capital and increased liquidity helps stabilize our financial position into 2010 - especially in the face of today's tight credit markets," TerreStar chairman of the board William M. Freeman said in the release.

TerreStar, through an exchange with SkyTerra, will consolidate its ownership of TerreStar Networks and SkyTerra-owned TerreStar Global Ltd.

SkyTerra is the parent company of Mobile Satellite Ventures, a Reston, Va.-based satellite company.

TerreStar, formerly Motient Corp., is a Lincolnshire, Ill., mobile satellite services company.

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