Motient Files for Chapter 11
If the courts approve the plan, Motient will eliminate more than $40 million in annual interest paymentsWireless network operator Motient Corp. announced on Thursday that it has filed for Chapter 11 bankruptcy and has arranged debt restructuring plans with its creditors. If the courts approve the plan, Motient will eliminate more than $40 million in annual interest payments, said officials at the Reston, Va., company.
"This restructuring allows Motient to proactively eliminate substantially all of its debt and to significantly improve our ability to achieve EBITDA break even later this year," said Walter V. Purnell, Jr., president and CEO of Motient, in a statement. "Even more significant, the restructuring will not affect the operations of our nationwide wireless data network, our customers or our employees."