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.