Comments on: What’s happening with TerreStar? https://tmfassociates.com/blog/2011/06/14/whats-happening-with-terrestar/ 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/2011/06/14/whats-happening-with-terrestar/comment-page-1/#comment-554 timfarrar Wed, 15 Jun 2011 04:36:33 +0000 http://tmfassociates.com/blog/?p=1975#comment-554 Because most of the supposed "assets" are investments in a bankrupt company (TSN) which may never be recovered Because most of the supposed “assets” are investments in a bankrupt company (TSN) which may never be recovered

]]> By: spectrum https://tmfassociates.com/blog/2011/06/14/whats-happening-with-terrestar/comment-page-1/#comment-553 spectrum Wed, 15 Jun 2011 04:08:19 +0000 http://tmfassociates.com/blog/?p=1975#comment-553 But still could not understand why TSC is in BK as total assets is close to 752 milllion and the debt is arond 500 million.... But still could not understand why TSC is in BK as total assets is close to 752 milllion and the debt is arond 500 million….

]]> By: timfarrar https://tmfassociates.com/blog/2011/06/14/whats-happening-with-terrestar/comment-page-1/#comment-552 timfarrar Wed, 15 Jun 2011 03:34:41 +0000 http://tmfassociates.com/blog/?p=1975#comment-552 The assets of TSC documented in the balance sheet include $177M book value for the 1.4GHz spectrum (intangible assets), a small amount of cash and a large amount invested in/loaned to other companies (mostly TSN). As stated previously, the amount available to pay TSC's ~$500M in debt and preferred stock is therefore basically equal to the value realized from the 1.4GHz spectrum plus any recovery from the TSN bankruptcy. Some of that may come through recoveries to unsecured creditors of TSN (on account of the loans to TSN) and some through the 88% equity stake in TSN (on account of the equity investments). The assets of TSC documented in the balance sheet include $177M book value for the 1.4GHz spectrum (intangible assets), a small amount of cash and a large amount invested in/loaned to other companies (mostly TSN).

As stated previously, the amount available to pay TSC’s ~$500M in debt and preferred stock is therefore basically equal to the value realized from the 1.4GHz spectrum plus any recovery from the TSN bankruptcy. Some of that may come through recoveries to unsecured creditors of TSN (on account of the loans to TSN) and some through the 88% equity stake in TSN (on account of the equity investments).

]]> By: sandy_s157 https://tmfassociates.com/blog/2011/06/14/whats-happening-with-terrestar/comment-page-1/#comment-551 sandy_s157 Wed, 15 Jun 2011 02:51:13 +0000 http://tmfassociates.com/blog/?p=1975#comment-551 Hi Tim, What do you make out of the TSC balance sheet statement in the link below? http://terrestarcorprestructuring.com/pdflib/97_10612.pdf Looks like the debt is less than total assets TSC owns. So why is TSC under bankrupcy? Also does the ~752 million include spectrum and satellite? The statement does not state it clearly. Can you clarify? Hi Tim,

What do you make out of the TSC balance sheet statement in the link below?

http://terrestarcorprestructuring.com/pdflib/97_10612.pdf

Looks like the debt is less than total assets TSC owns. So why is TSC under bankrupcy?

Also does the ~752 million include spectrum and satellite? The statement does not state it clearly. Can you clarify?

]]> By: timfarrar https://tmfassociates.com/blog/2011/06/14/whats-happening-with-terrestar/comment-page-1/#comment-550 timfarrar Wed, 15 Jun 2011 01:26:03 +0000 http://tmfassociates.com/blog/?p=1975#comment-550 No, the first ~$500M minus whatever value is attributed to the 1.4GHz spectrum will go to the TSC debtholders and preferred stockholders No, the first ~$500M minus whatever value is attributed to the 1.4GHz spectrum will go to the TSC debtholders and preferred stockholders

]]> By: spectrum https://tmfassociates.com/blog/2011/06/14/whats-happening-with-terrestar/comment-page-1/#comment-549 spectrum Wed, 15 Jun 2011 00:53:02 +0000 http://tmfassociates.com/blog/?p=1975#comment-549 However, it seems likely that minimal or no value would flow down to the equity holders in TSN (which is owned 88% by TerreStar Corporation and 12% by LightSquared) unless the total bid is increased beyond $1.4B. So if TSN goes above 1.4B does that mean that 88% of the money above 1.4B will go to common stock holders of TSC... However, it seems likely that minimal or no value would flow down to the equity holders in TSN (which is owned 88% by TerreStar Corporation and 12% by LightSquared) unless the total bid is increased beyond $1.4B.

So if TSN goes above 1.4B does that mean that 88% of the money above 1.4B will go to common stock holders of TSC…

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