TerreStar files for Chapter 11 Bankruptcy

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It was one month ago today that TerreStar launched their first handset, the Genus, through AT&T, and in what seems to be some form of bizarre celebration, they are today filing for Chapter 11 bankruptcy.

According to Chief Executive Jeffrey Epstein, TerreStar amassed $1.6 billion worth of liabilities, so is filing for chapter 11 in order to strengthen the company:

“Filing chapter 11 was a necessary and prudent step to strengthen our balance sheet and gain financial flexibility in order to access liquidity and position TerreStar Networks as a stronger, healthier company.”

A restructure will now occur, with an affiliate of Blackstone Group LP providing financial advice, while EchoStar Corp — their largest secured creditor — will provide $75 million to keep the company operating during the bankruptcy.

So, it is with fond thoughts (not really) that I bid farewell to the Genus, as well as its massive operating costs.

[via Engadget]

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