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TerreStar granted 60-day exclusivity extension on reorganization plan
By Lisa Kerner
Charlotte, N.C., Nov. 16 - TerreStar Networks Inc. was granted a fourth extension of its exclusive periods for filing and soliciting votes on a plan of reorganization by the U.S. Bankruptcy Court for the Southern District of New York, according to an attorney familiar with the case.
On Wednesday, the court extended the exclusive period for filing a Chapter 11 plan to Dec. 20 from Oct. 21 and extended the exclusive period for soliciting acceptances to Feb. 17, 2012 from Dec. 19.
The court issued a bridge order on Oct. 20 extending the exclusive periods pending a final ruling.
TerreStar said it needed the extension to conclude negotiations on a Chapter 11 plan that would distribute about $155 million remaining from the sale of substantially all of the company's assets.
As previously reported, Gamma Acquisition LLC paid $1.345 billion for the assets. TerreStar used $975 million to pay down its secured debt obligations, which consisted of all of the debtors' obligations under the debtor-in-possession financing facility and a large portion of the debtors' obligations under the senior secured notes and the PMCA lenders.
Also on Wednesday, the court denied TerreStar shareholder Aldo I. Perez's motion asking it to reconsider the Sept. 23 order denying appointment of an examiner.
TerreStar Corp. and TerreStar Holdings are subsidiaries of TerreStar Networks Inc., a Reston, Va.-based holding company. The company's subsidiaries operate satellite-based digital mobile communications systems. TerreStar Corp. and TerreStar Holdings filed for bankruptcy on Feb. 16, 2011. Their Chapter 11 case number is 11-10612.
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