Bankrupt TerreStar extends deadline for bids on assets

Bankrupt mobile satellite operator TerreStar Networks extended the deadline for bids on its assets to June 15.

According to court papers filed with the U.S. Bankruptcy Court in Manhattan, TerreStar indicated it will commence an auction on June 22 and a sale hearing is scheduled for June 28. The possible reason for the delay: TerreStar is still trying to negotiate a stalking horse bid.

TerreStar filed for bankruptcy in October with debts of more than $1 billion and a deal for EchoStar to provide $75 million in financing. However, its debt-for-equity restructuring agreement with EchoStar went by the wayside in February just after EchoStar announced a deal to buy Hughes Communications for $1.33 billion.

In December, the Wall Street Journal reported that MetroPCS (NASDAQ:PCS) was considering purchasing TerreStar's assets in a deal that could be worth as much as $1 billion. MetroPCS is reportedly interested in gaining access to TerreStar's spectrum, which it could use for its nascent LTE network.

For more:
- see this Reuters article

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