TerreStar Networks filed a voluntary petition for reorganization under chapter 11 of the U.S. Bankruptcy Code in October 2010.  During the chapter 11 cases, the Company has used and will continue to use its Debtor-in-Possession (DIP) financing of $75 million to maintain business-as-usual operations. The Company believes its current and anticipated cash resources will be suitable to pay its expenses and maintain its business operations while in chapter 11.

TerreStar Networks is actively engaged in the chapter 11 process with the goal of maximizing value for all of its constituents.  TerreStar Networks recently received Bankruptcy Court approval of bid procedures to conduct an auction of all or substantially all of its assets in mid-June.

For more information on the restructuring, please visit www.terrestarinfo.com.

Press Release