Bankrupt mobile satellite service provider ICO Global Communications said it has received letters of intent for the first in an expected three-stage debtor-in-possession financing package that, when complete, would total $1.2 billion.
The company said the letters of intent cover the first $225 million installment of that plan. It would not name the companies providing the funding, only that they were strategic investors.
ICO still needs to secure the remaining two installments of $975 million, in no particular incremental order.
“We’re getting very strong interest that the commitments for the remainder of the refinancing will be met,” said company spokesman Joe Tedino. “We’re not out of the woods yet, but this is a great sign.”
The proposed financing is subject to the approval of the U.S. Bankruptcy Court, as well as courts in both Bermuda and the Cayman Islands.
Along with pursuing financing opportunities, ICO said it is trying to cut costs associated with its constellation buildout.
“By aggressively reducing costs, we have cut our financing requirements by almost 30 percent to $1.2 billion, which is the amount needed to begin our global mobile satellite service,” said Richard Greco, ICO chief executive officer. “We have started to turn the corner with the new ICO and are pressing onward to emerge from Chapter 11, complete our system and start service.”
ICO still plans to meet its April 2001 start-up date.
Earlier in October, ICO restructured its executive management team. CEO Greco named Gardner Grant senior vice president of legal and regulatory issues, as well as general counsel. Grant had been acting general council since March.
Additionally, Greco replaced the position of vice president, commercial, with two new vice president positions, following the resignation of Fredrik Verkroost. Michael McLain was promoted to vice president of marketing, from vice president for sales and distribution in North America, and Michael Rugala was promoted to vice president of distribution and sales, from vice president and regional general manager for the Asia Pacific region.
In other MSS news, Leo One Worldwide Inc. said it has completed $400 million of launch services, payload and construction agreements to complete its 48 low-earth-orbit satellite constellation. The company signed contracts with Dornier Sattelitensysteme GmbH, Eurockot Launch Services GmbH and Lockheed Martin Space Electronics & Communications. Each company also made an equity investment in Leo One, the company said.
Leo One is not expected to offer service until 2001.
Additionally, Globalstar L.P. announced it successfully launched four more LEO satellites. The satellite-based global voice carrier recently began a phased service rollout and expects to add another eight satellites via two separate launches in the next two months, bringing the constellation to 48 operating satellites with four in-orbit spares.
