ICO Files Voluntary Chapter 11 Petition to Facilitate Financing of Global Telecommunications System - Company Financial Information

Cambridge Telcom Report, Sept 6, 1999

ICO Global Communications (Holdings) Limited (Nasdaq:ICOGF) announced that it has filed a voluntary petition for reorganization under Chapter 11 of the United States Bankruptcy Code in the U.S. Bankruptcy Court for the District of Delaware.

Commenting on the filing, Chief Executive Officer Richard Greco said, "ICO was created to develop and operate a convenient, high-performance, and cost-effective global mobile telecommunications business, and we have made substantial investments to build that business. Additional financial resources will be required to complete our system and begin commercial operations, and we have made considerable progress toward accomplishing these goals. A number of our strategic investors have confirmed their continuing interest in providing the company with financial support. Our Chapter 11 filing should provide ICO with the extra time needed to reorganize, recapitalize, and complete our financing. We believe that our actions will be successful, and that ICO will emerge as a very effective competitor in providing global mobile satellite telephone services."

Chapter 11 petitions also were filed in U.S. Bankruptcy Court by three of ICO's direct or indirect wholly-owned subsidiaries: ICO Global Communications (Operations) Ltd., ICO Global Communications Holdings B.V., and ICO Global Communications Services Inc. The ICO holding company and one of its subsidiaries are incorporated in Bermuda and the Cayman Islands, respectively, neither of which has a legal equivalent to Chapter 11 in the U.S. To facilitate a successful reorganization and protect its assets in those jurisdictions, ICO voluntarily presented petitions in those countries, where appropriate local officials have been appointed who will work in conjunction with ICO to achieve the objectives of reorganization.

Fifteen direct or indirect subsidiaries of ICO Global Communications (Holdings) Ltd., which are based in various countries in North and South America, Europe, and the Asia-Pacific region, are not filing for Chapter 11 protection. This includes the group's principal employer, ICO Services Ltd., which is based in the United Kingdom.

ICO is also seeking the approval of the U.S. Bankruptcy Court for the District of Delaware of a number of First Day Orders that will enable the company to continue normal business operations while it develops a Plan of Reorganization under the protection of Chapter 11. The First Day Orders would include approval to pay normal employee salaries, wages, and benefits, as well as other basic business expenses, without interruption.

ICO Global Communications was established in January 1995 as a private company to provide global mobile personal communications services by satellite, including digital voice, data, facsimile, high penetration notification, and messaging services. ICO Global Communications was listed on Nasdaq in July 1998.

Certain of the matters discussed in this news release are forward-looking statements that involve risks and uncertainties, including, without limitation, technical, regulatory, operating, competitive and market risks, risks relating to ICO being a development-stage company, and other risks and uncertainties. These are detailed in ICO's documents filed with the U.S. Securities and Exchange Commission.