The US Bankruptcy Court in Wilmington, Delaware has granted approval for ICO Global Communication's $500 million rescue package by a group led by telecommunications pioneer Craig McCaw. The amount comprises $225 million from McCaw's companies, Teledesic and Eagle River Investments, and ICO investors, with another $275 million to follow in January.
McCaw and Indian entrepreneur Subhash Chandra propose to provide new financing required by ICO to exit bankruptcy, which it entered in August. ICO needs $700 million in exit financing in the second quarter of next year. McCaw will provide 62% of the funding required to allow ICO to exit bankruptcy, while Chandra, which heads Indian conglomerate the Essel Group will provide 38%.
The $1.2 billion will enable ICO to complete 10 operational satellites and offer mobile communications services by the second quarter of 2001.
Source: Flight International