MUMBAI: Keeping aside its bankruptcy auction, TerreStar has declared Dish Network as its winning bidder.
In a document submitted to the Bankruptcy Court, the company said that it had not received any bids that exceeded Dish Network‘s $1.375 billion offer.
The Court now needs to approve Dish Network‘s bid at a hearing scheduled for 7 July.
"They have submitted what we believe to be the highest and best bid", remarked Preis, a lawyer for Akin Gump Strauss Hauer & Feld, the law firm representing TerreStar.
In March this year, Dish Network purchased bankrupt DBSD North America for $1.4 billion. This acquisition provides the Network an extremely valuable spectrum of DBSD for both wireless and wireline communications.
Additionally, Dish Network itself owns a slot of highly demanded 700 MHz wireless frequency and tablets. Using these slots of airwaves, the company can form a formidable video-on-demand service over a wireless network of mobile handsets such as smartphones.
TerreStar is currently engaged in a legal battle with Sprint Nextel Corp. for $104 million reimbursement claim for costs related to clearing spectrum bands.
