DBSD North America plan of reorganization takes effect as of March 9

By Caroline Salls

Pittsburgh, March 12 - DBSD North America, Inc.'s joint plan of reorganization took effect on Friday, according to a filing with the U.S. Bankruptcy Court for the Southern District of New York.

The plan was confirmed on July 5, 2011.

As previously reported, the plan is based on an investment agreement with DISH Network Corp. Under the agreement, DISH Network will acquire 100% of the equity of reorganized DBSD for up to $1.4 billion.

DISH Network made a cash tender offer to purchase some claims against DBSD and its affiliates.

Treatment of creditors will include:

• All claims for DBSD's 7.5% convertible senior secured notes due 2009 will be paid in full in cash;

• All of DBSD's credit facility obligations will be paid in full;

• Holders of general unsecured claims against DBSD will be paid in full in cash; and

• Equity interests will be canceled, and holders will be paid a total of $280 million.

DBSD is a subsidiary of ICO Global Communications (Holdings) Ltd., a Reston, Va., mobile satellite services company. The subsidiary filed for bankruptcy on May 15, 2009. Its Chapter 11 case number is 09-13061.

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