This reduces the number of "cell switches" from one satellite to another during a call, and a major cause of complaint among Iridium users who have complained of poor reception and dropped signals.

The company says its recent round of financing has been impacted by Iridium's own filing for Chapter 11. ICO is an international consortium of electronics and telecommunications firm and is essentially based in London.

ICO Chief Executive Richard Greco told the Los Angeles Times: "Our Chapter 11 filing should provide ICO with the extra time needed to reorganize, recapitalize, and complete our financing."

Greco expressed strong belief that the company's actions will prove successful, and ICO would emerge as a very effective competitor in providing global mobile satellite-telephone services.

Hughes which is the prime contractor for the fleet of 12 satellites has a 4% stake in ICO and is facing an exposure of up to $500 million if ICO fails to proceed.

ICO which along with Iridium has seen a steadily falling stock price was finally suspended from trading on NASDAQ Friday at a last sale price of $3.625 down 62.5 cents for the day.

On August 12, ICO announced that the financing proposal put to ICO by strategic investors on July 28 would be modified following the failure to receive binding subscription agreements for the purchase of Class B Shares and convertible notes in excess of $600 million.

With the company noting that the subscription agreements received were substantially below the minimum $600 million investment threshold, but giving no further details.

ICO says it needs more than $1 billion to launch its 12 satellites by late 2000. These funds would be in addition to the $3.1 billion ICO has has already raised from investors.

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Satellite Launch To Boost DTH In India
Calcutta, India (SPX) Dec 28, 2005
The successful launch Thursday of India's heaviest satellite from spaceport of Kourou in French Guyana may have boosted the country's space research efforts to yet another level, but it has also lifted the spirits of at least three Direct-To-Home televisions broadcasters, one of which has been waiting for years to launch its services in India.