TerreStar Corp. won court approval of a chapter 11 plan that hands ownership of the mobile-telecommunications company to several investors that specialize in distressed debt, Dow Jones Daily Bankruptcy Review. Bankruptcy Judge Sean H. Lane on Wednesday confirmed TerreStar's chapter 11 reorganization plan. The ruling paves the way for the company to exit bankruptcy protection under the ownership of such shareholders as hedge-fund managers Highland Capital Management, Solus Alternative Asset Management and West Face Capital. Each will have a seat on TerreStar's new board. The investors are among TerreStar's preferred shareholders, whose old shares will be canceled in favor of new common shares in the restructured company. They are among lenders behind a bankruptcy-exit loan of up to $27.5 million.
