TerreStar Networks Inc., a mobile communications company in bankruptcy, agreed to sell its assets to a unit of Dish Network Corp. for $1.38 billion.
EchoStar Corp., a TerreStar creditor, is an affiliate of the proposed buyer, Gamma Acquisition LLC, according to a filing today in U.S. Bankruptcy Court in New York. TerreStar will seek higher bids for the assets at an auction, it said in the filing.
TerreStar, based in Reston, Virginia, entered bankruptcy last year with a restructuring plan backed by creditor EchoStar. TerreStar, which uses a satellite network to provide mobile- communications service, withdrew the plan after saying it didn’t have creditor support for the deal.
Controlled by Charlie Ergen, EchoStar pulled back from an effort in February to buy up half ownership in TerreStar.
TerreStar sold the business after being unable to structure a Chapter 11 plan that satisfied conflicting creditor constituencies. It had filed for bankrupty in October.
