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Liberty Satellite Announces Transaction for Restructuring Astrolink
Englewood - Jan 24, 2003 Liberty Satellite & Technology, Inc., a majority owned entity of Liberty Media Corporation, said Thursday that it has reached agreement with Lockheed Martin Corporation, Northrop Grumman Space & Mission Systems Corp. (formerly TRW Inc.), and Telespazio S.p.A. in connection with the previously announced proposed restructuring of ASTROLINK International LLC. Astrolink was formed in 1999 to establish and operate a global communications system to deliver next-generation broadband service. Liberty Satellite currently owns 31.5% of Astrolink, with the remainder owned directly or indirectly by Lockheed Martin, Northrop Grumman, and Telespazio. Under the agreement, Liberty Satellite will acquire substantially all of the assets of Astrolink. Astrolink simultaneously signed agreements with Lockheed Martin and Northrop Grumman for completion of two satellites. The parties also reached agreement on the settlement of all claims related to the previous termination of Astrolink's major procurement contracts and all other major third party creditor claims. The closing of Liberty Satellite's acquisition of the Astrolink business is subject to regulatory approvals and other closing conditions, including Liberty Satellite obtaining satisfactory funding for the business from additional investors, third party sources of financing, or firm capacity commitments from prospective customers. Closing is expected to occur on or before October 31, 2003. If the closing occurs, Liberty Satellite will pay approximately $43 million in cash and will issue approximately $3 million in value of Series A common stock as total consideration for the Astrolink assets, including certain existing satellite and launch contracts, and the settlement of all claims against Astrolink. In addition, Liberty Satellite will provide additional interim funding for Astrolink pending closing. If the transactions are consummated, Liberty Media Corporation also will make a capital contribution to Liberty Satellite in an amount equal to 10% of the value of Liberty Media's equity holdings in Liberty Satellite at the time, up to a maximum commitment of $55 million, in exchange for shares of Liberty Satellite's Series B common stock at fair market value at closing. Liberty Satellite currently plans to pursue a revised operating plan for the new Astrolink system, taking into account current financial and market factors. The revised operating plan currently envisions launching Ka-band satellites to provide enterprise customers with virtual private networks and related advanced services, as well as their use in fulfilling the expanding needs for bandwidth by various government agencies. This agreement follows Liberty Satellite's announcement on December 23, 2002 of an agreement, subject to closing conditions, to increase its investment in Wildblue Communications. Proceeds from the investment will be used to continue funding Wildblue's business plan to provide satellite- delivered, high speed Internet access to residential and small business customers in areas not currently reached by competing broadband technologies. Related Links Liberty Satellite and Technology SpaceDaily Search SpaceDaily Subscribe To SpaceDaily Express
New Valley Offers $55 Million In Exchange For Globalstar Control
San Jose - Jan 16, 2003Globalstar, the world's most popular handheld satellite phone service, and New Valley Corporation announced Wednesday an agreement under which New Valley will provide Globalstar with debtor-in-possession financing as the first step toward assuming majority ownership of a new, reorganized Globalstar company. Subject to approval by the U.S. Bankruptcy Court in Delaware, the agreement calls for New Valley to make a total investment of $55 million in Globalstar. |
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