From: Michael S. Lorrey (retroman@turbont.net)
Date: Wed May 17 2000 - 18:11:13 MDT
http://technews.netscape.com/news/0-1004-200-1889831.html?tag=st.ne.ron.lthd.ni
Bankrupt satellite firm saved by cell phone pioneer
By Bloomberg News
May 17, 2000, 12:10 p.m. PT
LONDON--ICO Global Communications, a struggling satellite-telephone
company, emerged from bankruptcy protection with plans to be run by cell
phone pioneer Craig McCaw.
ICO, based in London, is seeking a merger with McCaw's satellite
company Teledesic to form ICO-Teledesic Global, a holding company that
will control the satellite assets of McCaw's private investment company
Eagle River Investments. McCaw will be chairman of the new company,
Teledesic said. Russell Daggatt was named acting chief executive of ICO
and ICO-Teledesic, replacing Richard Greco, who is resigning as CEO of
ICO.
ICO filed for protection from its creditors under Chapter 11 in U.S.
Bankruptcy Court in Wilmington, Del., in August. It cited $2.5 billion
in assets and $1.1 billion in debts after delaying $43 million in bond
interest payments. ICO Global won a U.S. judge's approval May 3 for a
bankruptcy plan of reorganization.
McCaw and Indian TV network operator Subhash Chandra received court
approval in December to buy ICO for about $1.2 billion. ICO said it's
upgrading its satellite equipment to add wireless Internet and other
data services. ICO was competing for business with rival satellite phone
companies Globalstar Telecommunications of New York, and Iridium of
Washington, which is also in bankruptcy court and ceased operations in
mid-March.
Teledesic had planned to offer high-speed Internet access anywhere in
the world using 288 low-earth-orbiting satellites. It has raised about
$1.5 billion from Microsoft chairman Bill Gates, Motorola, Saudi Prince
Alwaleed bin Talal, Boeing and others as of September. Chandra will
continue to be an investor, Teledesic said.
Copyright 2000, Bloomberg L.P. All Rights
Reserved.
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