ICO reported Tuesday that it had received non-binding letters of intent for "debtor in possession" financing from strategic investors in excess of $225 million that will be used to meet the company's immediate cash needs.
The non-binding letters were reported to the bankruptcy court in Delaware on Friday. Accordingly, ICO and its financial advisor, Wasserstein Perella & Co., believe there is reasonable assurance that the company can meet its financing requirements to begin global mobile satellite services, currently expected to start in April 2001.
Richard Greco, ICO's Chief Executive Officer, said, "I am very pleased with the support shown by strategic investors to our new business plan and financing plan.
"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.
"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," added Greco.
Successful completion and funding of the $225 million debtor in possession financing is subject to receipt of non-binding financing commitments for the balance of the company's financing requirements and satisfaction of certain other conditions.
The debtor in possession financing also is subject to approval of the U.S. Bankruptcy Court and the Bermuda and Cayman Island courts.
