TerreStar Mulling Bankruptcy
According to sources cited by the Wall Street Journal, satellite communications company TerreStar is on the verge of filing for bankruptcy. TerreStar provides satellite coverage over much of North America, and in September of this year launched its first handset in cooperation with AT&T. The handset uses AT&T's network where AT&T provides coverage, but can fall back on TerreStar's satellite network when in areas not covered by AT&T. TerreStar has one satellite in orbit and is planning to launch another. The Journal's sources indicate that TerreStar is burning through cash, and is already working with its creditors to come to terms with filing bankruptcy. One of TerreStar's initial investors was Philip Falcone, who is now backing LightSquared, a company planning to launch a nationwide Long Term Evolution network. The Journal says that TerreStar could file for Chapter 11 bankruptcy protection as early as this week.