ICO Global Communications has secured a definitive agreement with Craig McCaw’s Eagle River Investments, throwing a lifeline to the MSS operator, which has been in Chapter 11 bankruptcy since last year. The agreement effectively gives McCaw a controlling stake in ICO, with 75 per cent ownership. McCaw has come to a separate agreement with Indian media entrepreneur Subhash Chandra whereby the latter likely will acquire a 38 per cent stake of the 75 per cent, giving McCaw a total of just under 50 per cent ownership.

The deal will allow ICO to secure the second tranche of funding from McCaw of $275 million. The agreement remains subject to US bankruptcy court approval.

ICO has also confirmed it has signed a memo of understanding with Hughes Space & Communications and NEC, modifying their terms of supply. It is now believed that ICO will go ahead with the full original configuration of 12 satellites plus four spares. The first launch (on Sea Launch) has been tentatively scheduled for March 12.

As far as Iridium is concerned, McCaw reportedly is to provide at least $20 million of emergency financing to the operator, also in Chapter 11 bankruptcy. An earlier plan which envisaged McCaw taking over Iridium for $600 million seems now to have been shelved.