Some creditors, led by Sprint, had objected to the deal that Dish Network cut to buy DBSD out of bankruptcy for $1 billion because they weren’t getting paid much. But now Dish has agreed to write a bigger check and everyone is happy.
The law firm of Morrison & Foerster, which is representing DBSD parent company ICO Global Communications, fired off an email to let RBR-TVBR know that US Bankruptcy Judge Robert Gerber in New York had approved the enriched deal which added an additional $400 million to the price tag.
Acquiring DBSD appears to be a move by Dish to develop stronger competition to wired cable in the broadband arena. DBSD is in the business of providing an advanced hybrid system which combines satellite and terrestrial communications to support wireless voice, data and/or Internet services throughout the United States.
Along with modifying the bid for DBSD, Dish also agreed to acquire certain claims and rights from ICO with respect to DBDS’s G1 satellite and Dish also has the right to acquire some other assets from ICO.