ICO Global Communications, the global mobile communications company, today announced that the US Bankruptcy Court in Wilmington, Delaware, together with courts in Bermuda and the Cayman Islands, approved $150 million in interim debtor-in-possession financing led by Craig O. McCaw and his affiliated companies Teledesic LLC and Eagle River Investments LLC.
ICO filed for Chapter 11 bankruptcy protection on August 27, 1999, together with seeking protection in Bermuda and the Cayman Islands.
The court granted interim approval of the debtor-in-possession financing after also hearing a competing bid that was submitted late last week.
Mr. McCaw, Teledesic and Eagle River had agreed with ICO on October 31 to lead a group of international investors to provide up to $1.2 billion in new financing to ICO, subject to, among other things, confirmation and consummation of a reorganisation plan.
The company will seek final approval from the court on December 3, 1999, for the balance of the first tranche of $225 million, together with the second tranche of $275 million.
ICO Chief Executive Officer Richard Greco expressed his satisfaction at the progress towards completion of ICO's financing needs. "Approval by the court of $150 million in financing represents a very important step forward for us. I am very pleased that we have been able to maintain our momentum in the efforts to restructure the company and press forward towards commercial implementation."
The funds will be used to continue the buildout of ICO's integrated space and ground network.
ICO Global Communications (Nasdaq:ICOFQ) was established in January 1995 as a private company to provide global mobile personal communications services by satellite, including digital voice, data, facsimile, high-penetration notification, and messaging services. ICO Global Communications was listed on Nasdaq in July 1998. The stock was suspended from trading when the company filed for Chapter 11 protection on August 27, 1999.
Craig McCaw is chairman of Teledesic LLC, which is building a global broadband Internet-in-the-Sky satellite communications network. Mr. McCaw and Microsoft founder Bill Gates are the company's two primary founding investors. Strategic investors also include Motorola, Saudi Prince Alwaleed Bin Talal and The Boeing Company. Teledesic (pronounced "tel-eh-DEH-sic") is a private company based in Bellevue, Washington, a suburb of Seattle.
