... a Bonus for Bankrupting your COMPANY, What a Crock?
"Judge Approves Bonus Packages For TerreStar Executives
By Joseph Checkler, Of DOW JONES DAILY BANKRUPTCY REVIEW
NEW YORK -(Dow Jones)- A U.S. judge on Tuesday said TerreStar Networks Inc. could pay bonuses to top executives as the satellite company continues to seek either a buyer or a plan to exit bankruptcy on which its creditors can agree.
Judge Sean H. Lane of U.S. Bankruptcy Court in Manhattan approved the bonuses, which could pay TerreStar executives as much as $10.3 million if the company fetches $1.4 billion. No parties objected to the bonus package.
Last week TerreStar scrapped a plan that would have put it in the hands of EchoStar Corp. (SATS), as the company said it hasn't yet come up with a compromise between EchoStar and a group of noteholders fighting the deal.
EchoStar continues to seek either a compromise on an amended agreement with EchoStar or an alternative sale of its assets.
EchoStar's debtor-in-possession financing for TerreStar Networks will remain in place despite the scrapping of the plan, although the company will no longer be required to meet certain "milestones" depicted in that financing agreement.
Satellite-television mogul Charles Ergen is seeking to use his EchoStar to bring TerreStar out of bankruptcy. He is also seeking to use his other publicly traded company, Dish Network Corp. (DISH), to buy DBSD North America Inc. out of bankruptcy for $1 billion.
Among others said to be wrestling for control of TerreStar's valuable spectrum assets are a number of hedge funds including Phil Falcone's Harbinger Capital Management and, according to a recent Credit Suisse report, AT&T Inc. (T). Those companies haven't commented to Dow Jones on their reported interest.
Also on Tuesday's TerreStar docket were procedural first-day motions for TerreStar Corp. (TSTRQ), TerreStar Networks' publicly traded parent.
The parent company filed for Chapter 11 protection last week, saying it had secured $13.4 million in debtor-in-possession financing from Solus Alternative Asset Management. A hearing on the DIP financing was set to be scheduled for later in the case.
Reston, Va.-based TerreStar Networks, which is trying to build the first satellite smartphone, filed for Chapter 11 protection in Manhattan in October with a plan calling for secured noteholders such as EchoStar to swap more than $ 850 million in debt for nearly all the equity in a reorganized TerreStar. More junior creditors, however, would have received just pennies on the dollar, and existing equity holders would have gotten nothing."
Source of Post
http://www.nasdaq.com/aspx/stock-market-news-story.aspx?storyid=201102221223dowjonesdjonline000282&title=judge-approves-bonus-packages-for-terrestar-executives
"Judge Approves Bonus Packages For TerreStar Executives
By Joseph Checkler, Of DOW JONES DAILY BANKRUPTCY REVIEW
NEW YORK -(Dow Jones)- A U.S. judge on Tuesday said TerreStar Networks Inc. could pay bonuses to top executives as the satellite company continues to seek either a buyer or a plan to exit bankruptcy on which its creditors can agree.
Judge Sean H. Lane of U.S. Bankruptcy Court in Manhattan approved the bonuses, which could pay TerreStar executives as much as $10.3 million if the company fetches $1.4 billion. No parties objected to the bonus package.
Last week TerreStar scrapped a plan that would have put it in the hands of EchoStar Corp. (SATS), as the company said it hasn't yet come up with a compromise between EchoStar and a group of noteholders fighting the deal.
EchoStar continues to seek either a compromise on an amended agreement with EchoStar or an alternative sale of its assets.
EchoStar's debtor-in-possession financing for TerreStar Networks will remain in place despite the scrapping of the plan, although the company will no longer be required to meet certain "milestones" depicted in that financing agreement.
Satellite-television mogul Charles Ergen is seeking to use his EchoStar to bring TerreStar out of bankruptcy. He is also seeking to use his other publicly traded company, Dish Network Corp. (DISH), to buy DBSD North America Inc. out of bankruptcy for $1 billion.
Among others said to be wrestling for control of TerreStar's valuable spectrum assets are a number of hedge funds including Phil Falcone's Harbinger Capital Management and, according to a recent Credit Suisse report, AT&T Inc. (T). Those companies haven't commented to Dow Jones on their reported interest.
Also on Tuesday's TerreStar docket were procedural first-day motions for TerreStar Corp. (TSTRQ), TerreStar Networks' publicly traded parent.
The parent company filed for Chapter 11 protection last week, saying it had secured $13.4 million in debtor-in-possession financing from Solus Alternative Asset Management. A hearing on the DIP financing was set to be scheduled for later in the case.
Reston, Va.-based TerreStar Networks, which is trying to build the first satellite smartphone, filed for Chapter 11 protection in Manhattan in October with a plan calling for secured noteholders such as EchoStar to swap more than $ 850 million in debt for nearly all the equity in a reorganized TerreStar. More junior creditors, however, would have received just pennies on the dollar, and existing equity holders would have gotten nothing."
Source of Post
http://www.nasdaq.com/aspx/stock-market-news-story.aspx?storyid=201102221223dowjonesdjonline000282&title=judge-approves-bonus-packages-for-terrestar-executives
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