Replies to post #7085 on TerreStar Corporation (fka TSTRQ)

[Rich]

Call the IR? Investor relations?

How about calling the T/A? Wouldn't they know the true status of the common shares?

Just askin'

[TheFinalCD]

Thats NOT what these say>>>>>


TSTRQ

TerreStar Corporation will retain control of its 1.4GHz spectrum assets, but will see its shareholding in TerreStar Networks wiped out in the bankruptcy

http://www.google.com/imgres?imgurl=http://tmfassociates.com/blog/wp-content/uploads/2010/10/TerreStar-corporate-structure.jpg&imgrefurl=http://tmfassociates.com/blog/2010/10/19/understanding-the-terrestar-bankruptcy-filing/&usg=__FUsdv_4vl2zfbvEO08FMtq86DZ0=&h=1870&w=2420&sz=284&hl=en&start=0&zoom=1&tbnid=amO-xdrKuVS2OM:&tbnh=126&tbnw=151&ei=9gEZTrG4IYrn0QHLgq2YBQ&prev=/search%3Fq%3Dterrestar%2Bshare%2Bstructure%26um%3D1%26hl%3Den%26safe%3Doff%26client%3Dfirefox-a%26sa%3DN%26rls%3Dorg.mozilla:en-US:official%26biw%3D1024%26bih%3D568%26tbm%3Disch&um=1&itbs=1&iact=rc&dur=440&page=1&ndsp=15&ved=1t:429,r:0,s:0&tx=68&ty=60

Posted in Handheld, Operators, Services, Spectrum, TerreStar at 4:11 pm by timfarrar

TerreStar has finally admitted the obvious, and moved to reject its development and supply agreements with Elektrobit, asserting that “any benefit derived from the Agreement is insufficient compared to the relative burden because the Debtors no longer require the services provided under the Agreements”. TerreStar also asserts that “the Debtors do not believe that rejection of the Agreements will affect the TSN Debtors’ enterprise value…nor the TSN Debtors’ current efforts to market the TSN Debtors’ assets”.

This comes as something of a surprise because TerreStar had based its original plan for emergence from bankruptcy upon trying to sell the Genus phone on an ongoing basis, projecting that it would capture 41K subscribers by the end of 2011 and 156K subscribers by the end of 2014, which I noted at the time was a laughable idea. However, at least it shows that the company is now facing reality, given that only a few hundred phones have been sold and reviews of the Genus continue to be mediocre at best.

What I find most astonishing is that we got into this position in the first place, and people thought it was worth spending so much money simply to repeat the lessons of 1999, and prove once again that there simply isn’t “vast global demand” that will “only grow larger” for hybrid satellite-cellular phones. Investors in MSS spectrum assets have now gone through two business plans that turned out to be misguided, firstly that they could quickly flip the spectrum to major wireless carriers before they had even finished building their satellites, and secondly that they could utilize satellite roaming to keep these businesses afloat until demand for the underlying spectrum did emerge. Let’s hope that the current plan, to actually build out a terrestrial network and
offer service, works out better than the last two attempts.


Quote:
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The offer from Dish was carefully calculated at $1.375 billion adding up to enough to pay off all secured debt leaving $90 million the $200 million in unsecured creditors. Shareholders would, of course, not get anything, as is customary in bankruptcies of this type, which would leave LightSquared losing its 12% holding and most of its unsecured debt notes it has traded in.
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http://www.rethink-wireless.com/2011/06/16/dish-network-lands-stalking-horse-bid-terrestar-spectrum-14-bn-page1

Reston, Va.-based TerreStar, which is trying to build the first satellite smartphone, filed for Chapter 11 in Manhattan in October with a plan calling for secured noteholders like would-be parent EchoStar Corp. (SATS) to swap more than $850 million in debt for nearly all the equity in a reorganized TerreStar. More junior creditors, however, will get just pennies on the dollar, and existing equity holders are set to get nothing.

http://ih.advfn.com/p.php?pid=nmona&article=46088848

******DONT BASE YOUR INVESTMENT IN A BANKRUPTCY STOCK, ON WHAT ANY IR PERSON SAYS OVER THE PHONE******



common cents~

[tamiwithani]

Do you have an email for the IR? I'd like to see something from them in "writing" that the commons are fine. In the event you get something in writing to that effect, people will have to believe it because then the IR would be on the hook for lying to investors if it turned out to be false information. A phone call can be disputed.