Adding to the mounting woes of the mobile satellite services industry, ICO Global Communications reportedly filed for Chapter 11 bankruptcy protection late last week.
Reuters news service broke the story, citing officials at Hughes Electronics Corp., an ICO equity investor. The Nasdaq Stock Market later said it halted trading on ICO Global Communications Holdings Ltd. until the company provides additional information.
Officials at Hughes declined to comment on the story, and ICO did not immediately return calls for comment.
ICO is in the process of building a low-earth-orbit satellite network for global voice communications. The company had a board meeting scheduled Aug. 28 to review a recent financing modification, which would have its strategic investors buy new class B shares of common stock at a lower minimum subscriber threshold than originally planned. The proposal also called for creditors to defer payments until a later date.
Iridium L.L.C., the first-to-market LEO satellite provider, filed for Chapter 11 bankruptcy Aug. 13.
