DISH Network Corporation has announced that the company has entered into a contract to acquire 100% of the equity of the reorganized DBSD North America, Inc. DBSD North America, Inc. is a hybrid satellite as well as terrestrial communications company. DISH Network Corporation is going to acquire the company for approximately $1 billion subject to certain adjustments. The adjustments include the interest accruing on the existing debt of DBSD North America.

DISH Network is also going to commit to offer a debtor-in-possession credit facility to DBSD North America with regard to filings under Chapter 11 of the United States Bankruptcy Code. This credit facility remains subject to approval by the Bankruptcy Court. The credit facility will consist of one non-revolving, multiple draw term loan with the aggregate principal amount of $87.5 million.

This transaction will be completed upon fulfillment of a number of conditions which include approval by the Federal Communications Commission as well as DBSD North America’s recovery from bankruptcy.

Charlie Ergen, chief executive officer of DISH Network, took this measure to expand the company. DISH Network is a creditor of DBSD, and the company has lodged an appeal last December, in hope of overthrowing the bankrupt plan of DBSD – this appeal ended up by losing a lawsuit finally.

DBSD is a Reston-based company established in 2004 and its main business lines were to develop a wireless communication system in the areas which mobile phones can’t cover. After that, the company applied to protect bankrupt in May, 2009.