KIRKLAND, Wash.--(BUSINESS WIRE)--
ICO Global Communications (Holdings) Limited (NASDAQ: ICOG) ("ICO")
announced today that it has entered into a Restructuring Support
Agreement and Implementation Agreement with DISH Network Corporation
(NASDAQ: DISH) ("DISH"). Pursuant to these agreements, ICO has agreed to
support a proposed amended Investment Agreement between DISH and ICO's
subsidiary, DBSD North America, Inc. ("DBSD"), has granted to DISH
options to acquire certain ICO assets, and has agreed to grant to DBSD
certain spectrum priority rights. These agreements do not diminish or
otherwise alter ICO's obligations to Jay & Jayendra (Pty) Ltd, nor do
they affect in any manner ICO's ongoing litigation with The Boeing
Company and its subsidiary, Boeing Satellite Services, Inc. ICO retains
all rights to such litigation.
As contemplated by these agreements, DISH will, later today, seek
approval of the amended Investment Agreement by the United States
Bankruptcy Court for the Southern District of New York (the "Bankruptcy
Court"). Under the terms of the amended Investment Agreement and related
plan of reorganization, DISH will offer to purchase all of the
outstanding secured debt in DBSD and will agree to pay all outstanding
unsecured creditor claims in full.
As consideration for ICO's commitments under these agreements, DISH will
pay ICO approximately $324.5 million, with $35 million paid within five
days after Bankruptcy Court approval of the amended Investment
Agreement, and all but $10 million of the remainder paid approximately
thirty days after such approval.
If the Bankruptcy Court approves the amended Investment Agreement
between DBSD and DISH, ICO will enter into a tax matters agreement with
DISH that defines various tax‐related obligations and commitments. The
tax matters agreement will not have any significant impact on ICO's
existing or future net operating losses. In addition, if DBSD emerges
from bankruptcy pursuant to the terms of the related plan of
reorganization, ICO will facilitate DBSD's transition from bankruptcy by
entering into a license and radio spectrum coordination agreement with
DBSD and a transition services agreement with DBSD.
ICO is based in Kirkland, Washington. For more information, visit www.ico.com.
ICO's common stock is publicly traded on NASDAQ under the ticker symbol
ICO Global Communications
Christopher Doherty, 703-964-1414
Source: ICO Global Communications (Holdings) Limited
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