Dec 10 A U.S. appeals court has ruled that
satellite company DBSD North America's reorganization plan
violated bankruptcy law and remanded the case back to a
Manhattan court for further proceedings, regulatory filings
DBSD North America's parent, ICO Global Communications
(Holdings) Ltd ICOG.O, said in a filing with the U.S.
Securities and Exchange Commission (SEC) that the Second
Circuit Court of Appeals ruled on Monday that the
reorganization plan filed by DBSD violated the absolute
ICO Global said the value of its investment in DBSD North
America, which currently stands at $23.7 million, may be
materially impaired as a result of the ruling.
"Until the opinion is issued and further proceedings
transpire, we cannot estimate the amount of the impairment, if
any, or the amount of any future required cash expenditures,"
ICO Global said.
DBSD was formed in 2004 to design and develop a mobile
satellite and ground network for wireless communications. It
filed for Chapter 11 bankruptcy in May last year with $813
million in debt.
The company's restructuring plan was approved in October
2009 by the court but was appealed by some creditors.
Shares of ICO Global, which traded at 59 cents at the time
of the Chapter 11 filing, were flat at $1.71 on Friday on
(Reporting by Santosh Nadgir in Bangalore; Editing by Joyjeet