Comments on: What is TerreStar’s satellite spectrum worth? https://tmfassociates.com/blog/2010/08/23/what-is-terrestars-satellite-spectrum-worth/ Satellites, spectrum and other stuff Tue, 03 Feb 2026 21:36:32 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: timfarrar https://tmfassociates.com/blog/2010/08/23/what-is-terrestars-satellite-spectrum-worth/comment-page-1/#comment-451 timfarrar Wed, 25 Aug 2010 16:36:48 +0000 http://tmfassociates.com/blog/?p=410#comment-451 There has been one change to the TerreStar board this year, when Echostar's representatives resigned in January (http://tmfassociates.com/blog/2010/01/05/interesting-times-for-terrestar/) There has been one change to the TerreStar board this year, when Echostar’s representatives resigned in January (http://tmfassociates.com/blog/2010/01/05/interesting-times-for-terrestar/)

]]> By: waveslammer1 https://tmfassociates.com/blog/2010/08/23/what-is-terrestars-satellite-spectrum-worth/comment-page-1/#comment-449 waveslammer1 Wed, 25 Aug 2010 12:46:07 +0000 http://tmfassociates.com/blog/?p=410#comment-449 Nothing has officially been said about any change to the BOD. According to the Terrestar website, everyone on the board has been there for years. I may be wrong but when a board of a publicly traded company is changed I believe it has to be an official release of information. I will admit I am surprised that it has not happened. I assumed that as part of other agreements Harbinger agreed not to take over the board at that time. ie Satelite minutes, etc. wave Nothing has officially been said about any change to the BOD.
According to the Terrestar website, everyone on the board has been there for years.
I may be wrong but when a board of a publicly traded company is changed I believe it has to be an official release of information.

I will admit I am surprised that it has not happened.
I assumed that as part of other agreements Harbinger agreed not to take over the board at that time. ie Satelite minutes, etc.

wave

]]> By: ORBITRAX https://tmfassociates.com/blog/2010/08/23/what-is-terrestars-satellite-spectrum-worth/comment-page-1/#comment-448 ORBITRAX Tue, 24 Aug 2010 19:57:41 +0000 http://tmfassociates.com/blog/?p=410#comment-448 Harbinger controls the BOD, and will provide the DIP. I would expect a request for "Emergency DIP" in First Day Motions. I would suggest an Examiner for the estate. JMO. ORBITRAX Harbinger controls the BOD, and will provide the DIP. I would expect a request for “Emergency DIP” in First Day Motions. I would suggest an Examiner for the estate. JMO.

ORBITRAX

]]> By: timfarrar https://tmfassociates.com/blog/2010/08/23/what-is-terrestars-satellite-spectrum-worth/comment-page-1/#comment-447 timfarrar Tue, 24 Aug 2010 18:14:25 +0000 http://tmfassociates.com/blog/?p=410#comment-447 Typically in bankruptcy, the debtor can decide to reject or affirm existing lease contracts, without the consent of the other party (which is different from incurring secured debt). If a contract is rejected then the other party is left with a claim against the bankruptcy estate. Such a decision would be based on whether the existing contract is compatible with the debtors' new business plan and whether a better deal is on offer. It might conceivably be argued that no better deal would be forthcoming for the 1.4GHz spectrum, but if a decision is made to change the satellite business plan then it is hard to imagine that continuing with the Satellite Minutes Agreement would be in the interests of the debtor (indeed even if the Genus launch did go ahead there would be no reason to provide $40M of non-revenue generating services after emergence from bankruptcy). Typically in bankruptcy, the debtor can decide to reject or affirm existing lease contracts, without the consent of the other party (which is different from incurring secured debt). If a contract is rejected then the other party is left with a claim against the bankruptcy estate.

Such a decision would be based on whether the existing contract is compatible with the debtors’ new business plan and whether a better deal is on offer. It might conceivably be argued that no better deal would be forthcoming for the 1.4GHz spectrum, but if a decision is made to change the satellite business plan then it is hard to imagine that continuing with the Satellite Minutes Agreement would be in the interests of the debtor (indeed even if the Genus launch did go ahead there would be no reason to provide $40M of non-revenue generating services after emergence from bankruptcy).

]]> By: ORBITRAX https://tmfassociates.com/blog/2010/08/23/what-is-terrestars-satellite-spectrum-worth/comment-page-1/#comment-446 ORBITRAX Tue, 24 Aug 2010 17:43:28 +0000 http://tmfassociates.com/blog/?p=410#comment-446 As far as the 1.4Ghz spectrum goes, it is tied up in a multi-decade lease agreement which provides Harbinger with a 'Right of First Refusal", and still has ~23 million in pre-paid payments on balance. The US regulatory assets based on the 2.0Ghz MSS spectrum are likewise tied up in a decade long, 40 million pre-paid Satellite Minutes Agreement. In order to disaggregate the satellite from the US spectrum assignments would likely require consent from Skyterra LP/Harbinger. Any other entity looking to provide DIP and a competing Plan of Reorganization had better be prepared to provide Skyterra/Harbinger with at least a decade of US based Satellite Airtime Service from Terrestar-1. (Which would delay any incentive auction for at least 10 years, combined with a requirement and costs to actually provide Operational Service). Harbinger appears to have hedged their position well in regards to Terrestar. Most of Terrestars assets are now under decade or multi-decade pre-paid contractual agreements. ORBITRAX As far as the 1.4Ghz spectrum goes, it is tied up in a multi-decade lease agreement which provides Harbinger with a ‘Right of First Refusal”, and still has ~23 million in pre-paid payments on balance.

The US regulatory assets based on the 2.0Ghz MSS spectrum are likewise tied up in a decade long, 40 million pre-paid Satellite Minutes Agreement. In order to disaggregate the satellite from the US spectrum assignments would likely require consent from Skyterra LP/Harbinger.

Any other entity looking to provide DIP and a competing Plan of Reorganization had better be prepared to provide Skyterra/Harbinger with at least a decade of US based Satellite Airtime Service from Terrestar-1. (Which would delay any incentive auction for at least 10 years, combined with a requirement and costs to actually provide Operational Service).

Harbinger appears to have hedged their position well in regards to Terrestar. Most of Terrestars assets are now under decade or multi-decade pre-paid contractual agreements.

ORBITRAX

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