TerreStar Said to Cancel Auction, Proceed With $1.38 Billion Sale to Dish

Dish Network’s $1.38 billion deal for TerreStar Networks is set to go to court for approval after no competing bids were made for TerreStar.

TerreStar plans to proceed with the Dish deal after no rival bids were made by a 5 p.m. deadline June 26. Dish, the second-largest U.S. satellite-TV provider, agreed to buy Reston, Virginia-based TerreStar out of bankruptcy protection, as it makes acquisitions to move beyond its traditional pay-television business. Dish’s agreement was subject to higher bids at an auction that had been scheduled for June 30. TerreStar, which provides wireless communications using a satellite network, filed for bankruptcy last year. It put itself up for sale after an earlier restructuring plan fell apart. It will seek a judge’s approval for the Dish sale at a July 7 hearing at the U.S. Bankruptcy Court in Manhattan.