"DBSD, Dish Tweak Deal Ahead Of Hearing Next Week
By Joseph Checkler, Of DOW JONES DAILY BANKRUPTCY REVIEW
DBSD North America Inc. has tweaked its sale agreement with Dish Network Corp. (DISH)--including the removal of a crucial "no-shop" provision that creditors had objected to--ahead of a hearing on the $1.1 billion sale offer next week.
Although it does satisfy the concerns of some DBSD Creditors, the revised deal still has key objectors who will have their say in court next week. An ad hoc group of DBSD's bondholders still is objecting to the deal, which was filed Friday with the U.S. Bankruptcy Court in Manhattan. The group favors an amended version of a previously overturned exit plan that it says treats creditors more fairly.
Under the Dish buyout plan, Dish would get 100% of reorganized DBSD's equity, pay DBSD's senior notes in full, and provide what DBSD calls enhanced recovery for its unsecured creditors.
According to court papers filed before the most recent iteration of the sale deal, Sprint Nextel Corp. (S) is still objecting. Sprint Objected to the now- removed no-shop provision, but it also balked at how its claim of more than $100 million is being treated. According to the amended deal, DBSD offered to pay $40 million for that claim if Sprint votes for the deal. A Sprint lawyer didn't immediately respond to a request for comment.
In court papers filed Friday, DBSD's official committee of unsecured creditors said it tentatively supports the plan, touting the removal of the "no-shop" provision and some conditions placed on the deal. The amended plan would give 100% cash recovery to unsecured creditors with claims worth less than $50,000, and 75% recovery to unsecured creditors worth more than $50,000. A provision that said unsecured creditors must vote to participate in the tender offer to get their recovery was removed.
DBSD, a unit of ICO Global Communications Holdings Ltd. (ICOG), filed for bankruptcy in 2009 and had its plan confirmed by Judge Robert E. Gerber. That plan would have called for bondholders to swap $740 million in debt for a 95% stake in the reorganized company. Dish, the sole holder of $40 million in first- lien loans, would have had its debt continued with the new company under amended terms.
But both Dish and Sprint objected to the confirmation, and they got their wish in late 2010 when a court overturned it. Dish had called the plan unfeasible, and Sprint objected to the way the plan placed it lower on the totem pole than other creditors.
DBSD, Reston, Va., is developing a system that combines both satellite and terrestrial communications capabilities for wireless voice, data and Internet services.
Dish is controlled by satellite-television mogul Charles Ergen, who also is seeking to use his other publicly traded company, EchoStar Corp. (SATS), to bring TerreStar Networks Inc. out of bankruptcy.
(Dow Jones Daily Bankruptcy Review covers news about distressed companies and those under bankruptcy protection.)
-By Joseph Checkler, Dow Jones Newswires; 212-416-2152; joseph.checkler@ dowjones.com"
By Joseph Checkler, Of DOW JONES DAILY BANKRUPTCY REVIEW
DBSD North America Inc. has tweaked its sale agreement with Dish Network Corp. (DISH)--including the removal of a crucial "no-shop" provision that creditors had objected to--ahead of a hearing on the $1.1 billion sale offer next week.
Although it does satisfy the concerns of some DBSD Creditors, the revised deal still has key objectors who will have their say in court next week. An ad hoc group of DBSD's bondholders still is objecting to the deal, which was filed Friday with the U.S. Bankruptcy Court in Manhattan. The group favors an amended version of a previously overturned exit plan that it says treats creditors more fairly.
Under the Dish buyout plan, Dish would get 100% of reorganized DBSD's equity, pay DBSD's senior notes in full, and provide what DBSD calls enhanced recovery for its unsecured creditors.
According to court papers filed before the most recent iteration of the sale deal, Sprint Nextel Corp. (S) is still objecting. Sprint Objected to the now- removed no-shop provision, but it also balked at how its claim of more than $100 million is being treated. According to the amended deal, DBSD offered to pay $40 million for that claim if Sprint votes for the deal. A Sprint lawyer didn't immediately respond to a request for comment.
In court papers filed Friday, DBSD's official committee of unsecured creditors said it tentatively supports the plan, touting the removal of the "no-shop" provision and some conditions placed on the deal. The amended plan would give 100% cash recovery to unsecured creditors with claims worth less than $50,000, and 75% recovery to unsecured creditors worth more than $50,000. A provision that said unsecured creditors must vote to participate in the tender offer to get their recovery was removed.
DBSD, a unit of ICO Global Communications Holdings Ltd. (ICOG), filed for bankruptcy in 2009 and had its plan confirmed by Judge Robert E. Gerber. That plan would have called for bondholders to swap $740 million in debt for a 95% stake in the reorganized company. Dish, the sole holder of $40 million in first- lien loans, would have had its debt continued with the new company under amended terms.
But both Dish and Sprint objected to the confirmation, and they got their wish in late 2010 when a court overturned it. Dish had called the plan unfeasible, and Sprint objected to the way the plan placed it lower on the totem pole than other creditors.
DBSD, Reston, Va., is developing a system that combines both satellite and terrestrial communications capabilities for wireless voice, data and Internet services.
Dish is controlled by satellite-television mogul Charles Ergen, who also is seeking to use his other publicly traded company, EchoStar Corp. (SATS), to bring TerreStar Networks Inc. out of bankruptcy.
(Dow Jones Daily Bankruptcy Review covers news about distressed companies and those under bankruptcy protection.)
-By Joseph Checkler, Dow Jones Newswires; 212-416-2152; joseph.checkler@ dowjones.com"
Source of Post
Posted Here by
Investigative Blogger
Crystal L. Cox
Crystal@CrystalCox.com
Sprint Objected?
Sprint is Talking with Lightsquared - Harbinger Capital
http://www.digitaltrends.com/mobile/sprint-talking-lte-network-deal-with-lightsquared/
http://www.digitaltrends.com/mobile/sprint-talking-lte-network-deal-with-lightsquared/
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.