ICO Global Communications announced the first $150 million in interim debtor-in-possession financing offer led by Craig McCaw and his Eagle River Investments L.L.C. affiliate has been approved by the U.S. Bankruptcy Court, as well as courts in Bermuda and the Cayman Islands.
The approval of the first $150 million of McCaw’s $1.2 billion financing package is the first step leading ICO out of bankruptcy, which it entered Aug. 27.
The courts reviewed both the McCaw bid, announced Nov. 1, as well as a competing bid submitted a week later. ICO would not name the other bidder, but published reports identified Indian businessman Subhash Chandra as offering a competing financing proposal of $1.2 billion-matching the total of McCaw’s offer.
“Approval by the court of $150 million in financing represents a very important step forward for us,” said Richard Greco, ICO chief executive officer.
The $150 million is the first payment of the $225 million first tranche of the $1.2 billion total. ICO said it will seek further approval from the court on Dec. 3 for the balance of the first tranche, as well as for the second tranche of $275 million, expected by the end of January. The remainder of the $1.2 billion package will be paid upon ICO’s emergence from Chapter 11 bankruptcy protection.
McCaw’s Teledesic business is another of the international investor team providing funds.
