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To: djane who wrote (7891)	10/19/1999 4:53:00 PM
From: djane	Respond to of 29987

ICO Receives First Investment Since Chapter 11 By Vanessa Clark 19 October 1999 In its first fund-raising round since it filed for bankruptcy protection in August, ICO Global Communications has received non-binding letters of intent from shareholders for $225 million. The company, set to be the third satellite phone venture, hopes these letters of intent will be converted to binding contracts within the next few weeks, said a spokesman. The same unnamed shareholders have also expressed serious interest in becoming involved with future fund-raising tranches, he said. The company is now generally on-target with its business development plans and is "pleased with what has happened on our side," said the spokesman. ICO plans another two investment rounds in the next few months to raise a the $1.2 billion it needs to stay in business and get out of Chapter 11. ICO filed for bankruptcy protection after a boardroom stand-off between investors and suppliers stopped the creation of a new class of shareholders and a related investment of $500 million. This rights issue has now been abandoned. The spokesman would not give details of how the company plans to make the billion dollar saving it is promising investors in a new business plan. He said ICO had not yet decided whether it would operate its service with 10 rather than 12 MEO satellites, as some reports have speculated. These financial upheavals have caused ICO to delay its first satellite launch from this month to January or February next year. The roll-out of the satellite telephony service itself has also been set back by several months and is now scheduled for the first few months of 2001.