[Satellite TODAY Insider 01-02-11] Dish Network has entered into an agreement to acquire hybrid satellite and terrestrial communications company DBSD North America for approximately $1 billion, Dish Network announced Feb. 1.
DBSD, which filed for chapter 11 protection in May 2009, will receive an $87.5 million debtor-in-possession credit facility from Dish Network in exchange for the inclusion of the 7.5 percent interest accrued on DBSD’s existing debt to the acquisition price. The credit facility remains subject to approval by the U.S. Bankruptcy Court, will consist of a non-revolving, multiple draw term loan.
According to documents filed Feb. 1 with the U.S. Securities and Exchange Commission, Dish Network will acquire all of DBSD’s equity when it is reorganized.
Dish Network agreed to settle DBSD’s debts to The Bank of New York Mellon, which were due in 2009.
“All of DBSD North America’s obligations under the Credit Facility will be paid in full and the holders of general unsecured claims of DBSD North America shall receive partial payment. Certain additional claims in bankruptcy will also be paid in full,” Dish Network said in the filing.
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