TerreStar makes it official, files for Chapter 11 bankruptcy

Teetering no longer. According to Reuters, satellite phone maker TerreStar has filed for Chapter 11 bankruptcy to protect itself from liabilities in the range of $1.6 billion. As expected, a restructuring is in order, with Blackstone Group LP providing financial advice for such a move. One of TerreStars' creditors, EchoStar, is offering $75 million in financing to help keep the company operate while it goes through the bankruptcy. Shame that it's the icing on the cake for its Genus, having just launched on AT&T not one month ago. Them's the breaks.

[Thanks, Brian]