ICO is re-financed

@body:ICO Global Communications, the UK company set up in 1995 to develop a global mobile satellite communications system (previously known as Inmarsat P), has been bailed out of bankruptcy by an injection of $550 million.

The US Bankruptcy Court has granted final approval to the deal put together by Mr McCaw and Indian media entrepreneur Subhash Chandra. This ratifies an agreement to provide $225 million in debtor-in-possession financing, as well as $275 million in a second financing round.

Mr McCaw also agreed to commit up to an additional $700 million for exit financing, if this financing is not provided by other investors.

The total investment of £1.2 billion will enable ICO to complete the currently planned construction of its system, and will provide working capital up to the launch of its global mobile satellite services in the second quarter of next year.