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SkyTerra Pursuing Stalled MSV and TerreStar Consolidation |
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NEW YORK, Feb. 3, 2006/Satnews Daily/ — SkyTerra Communications, Inc. (OTC:SKYT) said on Thursday it has been pursuing transactions that would result in the consolidation of the ownership of Mobile Satellite Ventures LP (the MSV Joint Venture) and TerreStar Networks, Inc. (TerreStar).
In Sept. 22 last year, SkyTerra executed a non-binding letter of intent with Motient Corporation (Motient) and the other partners in the MSV Joint Venture and the other stockholders of TerreStar that proposed the basic terms of a consolidation of the ownership of the respective businesses.
The consolidation of the companies, however, has not been completed after SkyTerra raised the need to modify the terms of the transaction.
SkyTerra said it is continuing discussions with Motient and the other partners in the MSV Joint Venture and the other stockholders of TerreStar regarding a variety of potential structures to effect the consolidation of ownership of the MSV Joint Venture and TerreStar.
In a statement, Motient Corporation (MNCP) confirmed that it is continuing to actively pursue transactions that would allow it to rationalize the ownership of MSV and TerreStar Networks through the creation of two distinct public entities, one whose primary asset is an equity interest in MSV, and one whose primary asset is shares of TerreStar common stock.
Motient however said it believes that the previously announced roll-up transaction is unlikely to occur as contemplated or announced. Instead, Motient now intends, either directly or indirectly, to spin-off its interests in MSV to Motient shareholders.
Under that proposal, Motient's primary remaining asset would then be its controlling interest in TerreStar, although Motient would expect to retain a minority of its current MSV interests, directly or indirectly, to issue to the holders of Motient's preferred stock upon its conversion. Motient said it is actively studying the specific transaction structures available to it to accomplish these goals. Motient currently owns 61 percent of TerreStar and 49 percent of MSV.
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