NEW YORK (Reuters) - Terrestar Networks Inc
Ergen, who also controls EchoStar Corp
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According to a filing in Manhattan bankruptcy court, Dish will allow Terrestar to extend a deadline to obtain bids for its assets until June 27, with a court-supervised auction to take place on June 30. Any sale requires court approval.
Terrestar has operated under Chapter 11 bankruptcy protection since October. Its most sought-after assets include wireless airwaves used by wireless service providers.
In the filing, Terrestar also said EchoStar, its so-called debtor-in-possession lender, would raise to $90 million from $75 million the amount of financing it has available to run its business during the bankruptcy, provided Dish's bid were successful.
(Reporting by Nick Brown, Megan Davies, Matt Goldstein, Caroline Humer and Jonathan Stempel in New York; Editing by Maureen Bavdek)