ICO SAYS IT WILL GET $1.2 BILLION IN NEW FUNDS WITHIN TWO WEEKS
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ICO financing firming up.
by: one_dollar_chinese_food (39/M)
10/27/1999 1:23 am EDT
ICO SAYS IT WILL GET $1.2 BILLION IN NEW FUNDS WITHIN TWO WEEKS
(Satellite Week; Aviation Week & Space Technology; Oct. 25)--Bankrupt satellite phone company ICO closed the first of
three tranches of new investment last week, with the 2nd and 3rd expected to close within next two weeks, for a total of
$1.2 billion in new funds, the company said. If ICO succeeds in receiving $1.2 billion, it will have sufficient funds to enter
commercial service, a source said. the first tranche was for $225 million, although ICO received offers "in excess of that
amount," he said. Investments will come from ICO 's current group of "key investors," but the company wouldn't identify
them. [Aviation Week reports that some analysts believed they might include Boeing and cellular phone magnate Craig
McCaw.]
Hughes is "almost certainly" one of investors that has contributed additional funds, with Deutsche Telekom, Ericsson,
Inmarsat, NEC and TRW among other likely candidates, analyst said. Hughes already has invested $94 million in ICO and
sources said it had been willing, before ICO 's declaration of bankruptcy, to increase its investment by $100-$150 million if
other strategic investors made similar commitments. When they balked, ICO 's financing plans unraveled and company,
which hasn't begun commercial service, was unable to make $43 million interest payment to bondholders, necessitating
Aug. 27 bankruptcy filing. Hughes declined to comment.
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