Satmex stock purchase agreement terminated by EchoStar subsidiary

By Caroline Salls

Pittsburgh, March 16 - EchoStar Corp. wholly owned subsidiary EchoStar Satellite Acquisition LLC has terminated its agreement to acquire all of the outstanding share capital of Satelites Mexicanos SA de CV in conjunction with a Mexican joint venture partner, according to an 8-K filed with the Securities and Exchange Commission by EchoStar.

According to the 8-K, the agreement was terminated because Satmex failed to secure a consent approval and lock-up agreement in connection with a required redemption or repurchase of its existing first-priority senior secured notes due 2011 and second-priority senior secured notes due 2013.

Specifically, EchoStar said Satmex was required to solicit consents to amend the notes indentures to eliminate substantially all covenants and waive all defaults, as well as to enter into the lock-up agreement within 17 days of the execution of the stock purchase agreement.

The other parties to the stock purchase agreement were Deutsche Bank Mexico, SA, Institucion de Banca Multiple, Nacional Financiera, SNC and Institucion de Banca de Desarrollo.

Satmex is a Juarez, Mexico-based satellite coverage provider.

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