Liberty Satellite & Technology, Inc., has announced that it has exercised its right to terminate the previously announced agreement to restructure ASTROLINK International LLC.
If the closing under the Astrolink restructuring agreement had occurred, Liberty Satellite would have acquired substantially all of the assets of Astrolink in exchange for cash and common stock.
As a result of the termination of the restructuring agreement, Liberty Satellite will receive $7.8 M 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, Northrop Grumman, and Telespazio.
Sareholders of Liberty Satellite will meet November 12th at a special meeting of stockholders to vote on the approval of the adoption of the merger agreement pursuant to which Liberty Media, the majority shareholder of Liberty Satellite, would acquire the remaining publicly held common stock of Liberty Satellite.
