Liberty Satellite Out of Astrolink10/29/2003 10:28 AM Eastern
Liberty Media Corp.’s Liberty Satellite & Technology Inc. announced Wednesday that it exercised its right to terminate its previously announced agreement to restructure Astrolink International LLC.
Had the closing under the Astrolink restructuring agreement occurred, Liberty Satellite would have acquired substantially all of Astrolink’s assets in exchange for cash and common stock.
As a result of the termination, Liberty Satellite will receive $7.8 million in cash in exchange for its equity interest in Astrolink and for all notes evidencing loans made by Liberty Satellite to fund Astrolink's continuing operations during the period that the restructuring agreement was pending.
In addition, all claims related to Astrolink among its equity holders and creditors have been released or settled.
Astrolink was formed in 1999 to establish and operate a global communications system to deliver next-generation broadband service.
Liberty Satellite acquired an approximate 31.5% of Astrolink in March 2000, with the remainder owned directly or indirectly by Lockheed Martin Corp., Northrop Grumman Space and Mission Systems Corp. and Telespazio S.p.A.