ICO Global Communications has been forced to come up with new financing proposals following the failure of its recent rights issue. ICO, which aims to launch global mobile satellite services late next year, hoped to raise up to $1 billion through last month's issue, but it was shelved after raising less than the minimum $500 million required.
ICO's board has approved an alternative proposal under which some of its investors - 60 telecoms and technology companies - would provide $600 million by early next month. The new investment is subject to conditions including due diligence of ICO's operations, approval of its business model and cost reduction proposals, and approval of the plan at a shareholders' meeting due on 28 August.
ICO has so far raised $3 billion, but admits that even with the $600 million it will need to raise further financing by early 2000 to allow it to continue operations, up to a total of $1.6 billion needed before service launch.
Source: Flight International