TERRESTAR CORPORATION, THE PARENT COMPANY OF EB (ELEKTROBIT CORPORATION)'S CUSTOMER TERRESTAR NETWORKS ALREADY IN A CHAPTER 11 CASE, HAS FILED FOR REORGANIZATION. EB HAS SIGNIFICANT RECEIVABLES FROM T
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Free for publication on February 17, 2011, at 11:00 a.m. (CET+1)
TERRESTAR CORPORATION, THE PARENT COMPANY OF EB (ELEKTROBIT CORPORATION)'S
CUSTOMER TERRESTAR NETWORKS ALREADY IN A CHAPTER 11 CASE, HAS FILED FOR
REORGANIZATION. EB HAS SIGNIFICANT RECEIVABLES FROM TERRESTAR.
EB (Elektrobit Corporation) has been informed that a customer of EB's subsidiary
Elektrobit Inc., TerreStar Corporation (TerreStar), yesterday filed a voluntary
petition for reorganization under Chapter 11 of the United States Bankruptcy
Code. TerreStar is the parent company of Elektrobit Inc's customer TerreStar
Networks Inc (TerreStar Networks) that has previously filed a petition for
corresponding reorganization. Chapter 11 of the United States Bankruptcy Code
establishes a process for reorganizing financially troubled companies. On
February 15, 2011, EB's outstanding receivables from TerreStar Networks amounted
to approximately USD 25.8 million (EUR 19.1 million as per exchange rate of
February 15, 2011).
EB announced on November 20, 2010 that it had initiated legal proceedings
against TerreStar to claim repayment of its receivables from TerreStar. The
claim is partly based on a guarantee issued by TerreStar of EB's accounts
receivables from TerreStar Networks and partly based on TerreStar's direct
contractual obligations towards EB. The legal proceedings brought by EB against
TerreStar in order to collect the amounts owed to EB have now been stayed
pursuant to United States bankruptcy law. It is EB's understanding that EB can
assert the claim in the reorganization case now commenced.
In the given timeframe it has not been possible to thoroughly examine
TerreStar's court filings. Potential implications on collecting the amounts owed
to EB and on EB's profit, financial position and outlook will be announced later
when a reasoned analysis can be made.
Uncertainties regarding TerreStar Networks' filing for reorganization and
collecting the receivables from TerreStar Networks and TerreStar have been
presented under the "Risks and Uncertainties" section of the EB's Financial
statement bulletin 2010 published today, on February 17, 2011. Information on
the development of TerreStar Networks' filing for reorganization and EB's
initiated legal proceedings against TerreStar are presented in the October 20
and 25, November 20, and December 30, 2010 stock exchange releases at
www.elektrobit.com.
Oulu, 17.2.2011
EB, Elektrobit Corporation
Jukka Harju
Chief Executive Officer
Further information:
Jukka Harju
Chief Executive Officer
Tel +358 40 344 5466
For further information on TerreStar and TerreStar Networks, please see
www.terrestar.com and www.TerreStarInfo.com.
Distribution:
NASDAQ OMX Helsinki
Principal media
EB, Elektrobit Corporation
EB creates advanced technology and turns it into enriching end-user experiences.
EB is specialized in demanding embedded software and hardware solutions for
wireless and automotive industries. The net sales for the year 2010 totaled MEUR
161.8. Elektrobit Corporation is listed on NASDAQ OMX
Helsinki.www.elektrobit.com
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Elektrobit Oyj via Thomson Reuters ONE
[HUG#1490005]
Unternehmensinformation / Kurzprofil:
Datum: 17.02.2011 - 10:00 Uhr
Sprache: Deutsch
News-ID 51628
Anzahl Zeichen: 4251
contact information:
Town:
Oulu
Kategorie:
Business News
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