TerreStar Networks Inc
A 5 p.m. deadline came and went with Dish's $1.375 billion minimum or stalking horse bid, submitted June 15, remaining the only offer on the table, said the sources, who spoke on the condition of anonymity because the sale process is private.
Potential challengers to Dish had included TerreStar's senior bondholders, which had sought unsuccessfully to become the stalking horse bidder, and MetroPCS Communications Inc
But both groups remained quiet on Monday, according to the sources.
While unlikely, it is possible a bid could come in after deadline, one of the sources said. It is unclear whether such a bid would be allowed by the court.
If no bids are received, TerreStar would likely cancel its auction initially planned for Thursday, the sources said. A sale hearing is scheduled for July 7.
TerreStar, which tried to market the first satellite smartphone, is coveted for its roughly 20 megahertz of spectrum. It filed for bankruptcy in October with more than $1 billion in debt.
If consummated, the sale would be at least the third major acquisition in 2011 for Dish, controlled by billionaire Charles Ergen. The company in March won the right to acquire bankrupt DBSD North America for about $1.4 billion, and recently closed a $320 million deal for Blockbuster Inc
Ergen, whose burgeoning satellite empire continues to expand, also controls EchoStar Corp
Representatives for TerreStar did not respond to requests for comment Monday. Dish declined to comment.
Any superior bid for TerreStar would have had to top Dish's offer by $55.5 million under procedures set by the bankruptcy court. A $27.5 million breakup fee would have been paid to Dish if it had lost to a higher bidder.
The deal is expected to be made public late on Monday, sources said.
The case is in re: TerreStar Networks Inc., U.S. Bankruptcy Court, Southern District of New York, No. 10-15446.
(Reporting by Nick Brown; editing by Carol Bishopric)
(This story is corrected to fix number in paragraph 9)