Remember TerreStar? The satellite company that makes those slick little satellite phones? Yeah, well, it just filed for Chapter 11 bankruptcy. Word was that the company wasn’t doing so well, so this doesn’t come as a surprise to those who were whispering about TerreStar’s financial woes. After the all, the company has over $1 billion in outstanding liabilities!
According to Reuters:
TerreStar had $1.4 billion of assets and $1.64 billion of liabilities as of June 30, according to a quarterly report filed with the U.S. Securities and Exchange Commission.
“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,” Chief Executive Jeffrey Epstein said in a statement.
Moreover, the company will be getting a little nudge by EchoStar, who will offer up $75 million in financing.
[Via: Reuters and PhoneScoop]