TerreStar Networks Restructures Under Chapter 11
TerreStar Corporation (Nasdaq: TSTR) announced today that its majority-owned subsidiary TerreStar Networks Inc. and certain other affiliates have filed voluntary petitions for reorganization under chapter 11 of the U.S. Bankruptcy Code as part of a strategic plan to strengthen their financial position and achieve long-term success in the mobile satellite services market.
Through the restructuring, TerreStar Networks hopes to lessen its debt obligations in order to place greater focus on delivering the future of 'always available' mobile communications through its recent launch of the world's first integrated satellite-cellular smartphone.
Jeffrey W. Epstein, president and chief executive officer, TerreStar, said, "After careful consideration of all available alternatives, we determined 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."
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.