Bankrupt telecommunications company Terrestar Networks Inc is nearing a minimum bid agreement of $1.2 billion to $1.4 billion and is likely to go with an offer from billionaire Charlie Ergen, chairman of Dish Network Corp , according to sources with direct knowledge of the situation.

Ergen, who also controls EchoStar Corp , has been competing against other players, including a group of senior noteholders and wireless communications company MetroPCS Communications Inc
, sources said.

Terrestar, which filed for bankruptcy in October, faces a Wednesday deadline for bids. Its most sought after assets include wireless airwaves, which enable wireless service providers to offer services.

(Reporting by Nick Brown, Megan Davies, Matt Goldstein and Caroline Humer; editing by Andre Grenon)