Motient Corp. [MTNT], formerly American Mobile Satellite Corp., has formed a new subsidiary, Motient Satellite Ventures LLC, and announced a $50 million investment from an investment group consisting of Columbia Capital, Spectrum Equity Investors and Telecom Ventures LLC.

Motient President and CEO Walter Purnell Jr. described the venture as a way for Motient to enhance existing satellite applications as well as explore new options for the applications of tomorrow.

While Purnell was vague on the opportunities that the new subsidiary would be exploring, he was more forthright in disclosing some of the financial aspects of the transaction.

As it stands right now, $6 million of the $50 million will remain within the subsidiary. The balance will go to the parent company. Motient also received special waivers on existing debt covenants so only $2.5 million will be used to pay down debt. The remainder will be used to finance ongoing operations at Motient.

In exchange for the up-front payment, the investment group received a 20 percent stake in the newly formed subsidiary. The investment group also will have other financial options. The group can turn its cash investment into shares of Motient with a conversion price ranging between $12 and $20 a share.

Another option would be for the investors to pump in an additional $120 million. If that scenario were to play out, the investment group would gain a 60 percent stake in the subsidiary. Additionally, Motient’s satellite assets would transfer to Motient Satellite Ventures. All the $120 million would go to Motient and a significant portion of that would be used to pay down Motient’s debt, Purnell said.