TerreStar Networks gets additional time to file plan, garner support

By Lisa Kerner

Charlotte, N.C., May 19 - TerreStar Networks Inc. was granted a 90-day extension to its exclusive periods for filing and soliciting votes on a plan of reorganization, according to a Thursday filing with the U.S. Bankruptcy Court for the Southern District of New York.

The court extended the company's exclusive filing period to Aug. 22 from May 23 and the solicitation period to Oct. 20 from July 22.

TerreStar had requested the extensions through Sept. 20 and Nov. 21, respectively.

In making the extension request, the debtors said they needed additional time to resolve or distribute the proceeds from asset sales, to reach agreements with the various constituents regarding a modified exit strategy from Chapter 11 and to solicit any plan executing such exit.

Previously the court extended the company's exclusive filing period by 75 days through May 23 and the solicitation period for 75 days through July 22.

Based in Reston, Va., TerreStar is a holding company with subsidiaries that operate satellite-based digital mobile communications systems. The company filed for bankruptcy on Oct. 19, 2010. The Chapter 11 case number is 10-15446.

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