TerreStar Networks' exclusivity extended to resolve contested issues

By Caroline Salls

Pittsburgh, Sept. 19 - TerreStar Networks Inc. received a 60-day extension to its exclusive periods for filing and soliciting votes on a plan of reorganization, according to a Monday filing with the U.S. Bankruptcy Court for the Southern District of New York.

The company's exclusive filing period was extended to Oct. 21 from Aug. 22 and the solicitation period was extended to Dec. 19 from Oct. 20.

"There still remain outstanding litigation and other contested issues that must be resolved before these cases can be concluded and the proceeds from the sale process be distributed to the debtors' creditors," TerreStar said in the motion.

Contested issues include the adversary proceeding that Sprint-Nextel Corp. filed against the indenture trustee for the debtors' senior secured notes, the PMCA litigation, and the creditors' committee's T2 litigation.

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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