SatMAX completes debt elimination plan

Wireless satellite coverage provider SatMAX has announced that it has eliminated a total of US$1.4m of its debt, US$600,000 more than it had initially planned to pay off.
On January 5, SatMAX revealed that as part of its financing plan for 2010, the…

Wireless satellite coverage provider SatMAX has announced that it has eliminated a total of US$1.4m of its debt, US$600,000 more than it had initially planned to pay off.

On January 5, SatMAX revealed that as part of its financing plan for 2010, the company would eliminate and restructure US$800,000 worth of debt which it had originally acquired since its inception.

Don Bresina, CEO of SatMAX Corporation, said: “This is a critical step in strengthening our business since it relieves a significant burden of debt while giving us an effective capital structure which allows us to achieve our true growth potential. Operationally speaking, we are making outstanding progress, as demonstrated by recent GSA-approved reseller agreements with Houston-based TLC Engineering.”

SatMAX was originally part of Eagle Broadband but was sold to IP security convergence solutions provider Security Financing Services for US$100,000 (plus a three-year earn-out provision) in September 2007. Its new parent subsequently changed its name to Echo Satellite Communications in February 2008 but this was then changed back to SatMAX in May 2009 following a request from EchoStar. Since then, the parent has been restructuring the business including carrying out a 1-for-20 reverse stock split in May 2009.

SatMAX’s core technology is a satellite communications solution that enables multiple callers to use Iridium-based satellite phones in non-line-of-sight locations, such as indoors.