Deloitte Tax LLP 1750 Tysons Blvd. McLean, Virginia 22102-4219 ...

Deloitte Tax LLP 

1750 Tysons Blvd. 

McLean, Virginia 22102-4219 

Telephone: 703-251-3703 

Facsimile: 703-332-7282 

Gregory Anderson 

Tax Advisor for Debtors and Debtors in Possession 

UNITED STATES BANKRUPTCY COURT 

SOUTHERN DISTRICT OF NEW YORK 

--------------------------------------------------------------- 

In re 

TERRESTAR NETWORKS INC., et al., 

Debtors. 

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: 

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: 

: 

x 

Chapter 11 

Case No. 10-15446 (SHL) 

Jointly Administered 

FIRST INTERIM APPLICATION OF DELOITTE TAX LLP 

FOR COMPENSATION FOR SERVICES RENDERED AND REIMBURSEMENT OF EXPENSES 

AS TAX ADVISORS FOR THE DEBTORS FOR THE PERIOD 

FROM OCTOBER 19, 2010 THROUGH AND INCLUDING JANUARY 31, 2011 

Name of Applicant: 

Authorized to Provide Tax Advisement 

Services to: 

Date of Retention: 


TerreStar Networks, Inc. 

Effective October 19, 2010 by 

Order Signed on January 13, 2011 

FIRST INTERIM APPLICATION: 

Period for which Compensation and Reimbursement 

is Sought: October 19, 2010 through January 31, 2011 

Amount of Compensation Sought as Actual, 

Reasonable and Necessary: $329,621.00 

Amount of Expense Reimbursement Sought as 

Actual, Reasonable and Necessary: 

$1,445.76 

This is an interim application.

MONTHLY FEE APPLICATION SUMMARY: None filed to date 

INTERIM FEE APPLICATION SUMMARY: None filed to date 

FIRST INTERIM CUMULATIVE TIME SUMMARY 

For the Period October 19, 2010 through January 31, 2011 

Professional Level Hours Rate Fees 

Anderson, Gregory R Director 52.0 730.00 $ 37,960.00 

Banks, Anthony Douglas Staff 5.3 305.00 1,616.50 

Bauer, Maureen Caitlin Staff 2.4 305.00 732.00 

Boyle, Matthew Scott Manager 27.3 515.00 14,059.50 

Carr, Joseph G Director 0.5 730.00 365.00 

Carrington, Trevor Max Staff 9.9 305.00 3,019.50 

Damen, John Dewey Manager 70.7 515.00 36,410.50 

Davis, Richard Trippe Director 3.4 730.00 2,482.00 

Dudek Jr , John W Senior 98.1 390.00 38,259.00 

Frishman, Scott P Senior Manager 0.7 590.00 413.00 

Gardner, Rebecca Lynn Staff 2.1 285.00 584.25 

Harrison, Stephen C Senior Manager 43.8 590.00 25,842.00 

He, Lipeng Manager 1.3 515.00 643.75 

Kelly, Edward T Senior Manager 74.6 590.00 44,014.00 

Laskovics, Matthew Stephen Senior 11.9 390.00 4,641.00 

Ota, Mana Kate Senior 1.6 565.00 904.00 

Padilla, Dana Agnes Senior 61.0 390.00 23,790.00 

Ramirez, Honesto Vitug Manager 4.0 515.00 2,060.00 

Reiff, Christopher Senior Manager 20.9 590.00 12,331.00 

Sagredo, Claudia Wendy Staff 1.1 390.00 429.00 

Schmidt, Beth A Staff 11.3 300.00 3,390.00 

Schneider, Mark Alan Partner/Principal 12.5 730.00 9,125.00 

Stokes, Nicholas Michael Senior 67.9 390.00 26,481.00 

Sullivan, Brian Joseph Director 1.0 730.00 730.00 

Tarrant, Stephen A Partner/Principal 46.8 730.00 34,164.00 

Virk, Pavanpreet K Senior 5.3 390.00 2,047.50 

Welsh Jr , Peter Joseph Staff 8.9 305.00 2,714.50 

Yanchisin, Helen S Senior Manager 0.7 590.00 413.00 

Total: October 19, 2010 -- January 31, 2011 646.9 $ 329,621.00 

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FIRST INTERIM CUMULATIVE MATTER SUMMARY 


Work Category 

Hours 

Fees 

Tax Advisement and Related Services 

Chapter 11 Administrative Services and Related Matters 

Total: October 19, 2010 -- January 31, 2011 

608.1 $ 310,491.50 

38.8 19,129.50 

646.9 $ 329,621.00 

FIRST INTERIM CUMULATIVE EXPENSE SUMMARY 


Expens e Category 

Expens e Total 

Business Meals $ 147.26 

Telecommunications 27.71 

Travel - Airfare 509.16 

Travel - Auto 217.29 

Travel - Hotel 544.34 

$ 

1,445.76 

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Telephone: 703-251-3703 

Facsimile: 703-332-7282 


Tax Advisor for Debtors and Debtors in Possession 



--------------------------------------------------------------- 

In re 

TERRESTAR NETWORKS, INC., et al., 

Debtors. 

--------------------------------------------------------------- 

x 

: 

: 

: 

: 

: 

: 

: 

x 

Chapter 11 

Case No. 10-15446 (SHL) 

Jointly Administered 

FIRST INTERIM APPLICATION OF DELOITTE TAX LLP 

FOR COMPENSATION FOR SERVICES RENDERED AND REIMBURSEMENT OF EXPENSES 

AS TAX ADVISORS FOR THE DEBTORS, FOR THE PERIOD FROM 

OCTOBER 19, 2010 THROUGH AND INCLUDING JANUARY 31, 2011 

Deloitte Tax LLP (“Deloitte Tax”), tax advisors for TerreStar Networks, Inc. 

(“TerreStar”), and certain of its subsidiaries, debtors and debtors-in-possession in the above-captioned 

cases (collectively with TerreStar, the “Debtors”), submits this (i) first interim application (the “First 

Interim Application”) seeking allowance of compensation and reimbursement of expenses under sections 

330 and 331 of title 11 of the United States Code for the period from October 19, 2010, through and 

including January 31, 2011 (the “First Interim Period”). In support of the First Interim Application, 

Deloitte Tax respectfully represents as follows: 

BACKGROUND 

1. On October 19, 2010 (the “Petition Date”), the Debtors filed petitions with the United 

States Bankruptcy Court for the Southern District of New York (the “Court”) under chapter 11 of title 11 

of the United States Code (the “Bankruptcy Code”). The Debtors are operating their businesses and 

managing their properties as debtors in possession pursuant to §§ 1107(a) and 1108 of the Bankruptcy 

Code.

2. The Court has jurisdiction over this matter pursuant to 28 U.S.C. §§ 1334. This is a core 

proceeding pursuant to 28 U.S.C. § 157(b)(2). 

3. On January 13, 2011, the Court entered an Order Authorizing the Employment and 

Retention of Deloitte Tax LLP to provide tax advisement services to the Debtors nunc pro tunc to 

October 19, 2010 (the “Retention Order”) in accordance with the terms and conditions of Deloitte Tax’s 

engagement letter with the Debtors (as referenced in the Retention Order, the “Engagement Letter”). 

4. On November 17, 2010, the Court signed the administrative order authorizing certain 

professionals to submit applications for interim compensation and reimbursement of expenses on a 

monthly basis pursuant to the procedures specified therein (the “Interim Compensation Order”). 

RELIEF REQUESTED 

5. By this First Interim Application, Deloitte Tax respectfully requests approval and 

payment of compensation and reimbursement of expenses for Deloitte Tax, professionals to the Debtors, 

pursuant to Bankruptcy Code sections 330 and 331 and the Interim Compensation Order. 

6. Deloitte Tax is seeking compensation in the amount of $329,621.00 for professional 

services rendered by Deloitte Tax as tax advisors for the Debtors in these chapter 11 cases. Deloitte Tax 

also requests reimbursement of actual and necessary disbursements and charges incurred in the amount of 

$1,445.76, which expenses were incurred while rendering professional services to the Debtors. Deloitte 

Tax has been paid $43,516.00 to date for its services rendered during these chapter 11 cases. Of this 

amount, $8,689.42 was overpaid based on the terms of payments currently permissible under the terms of 

the Interim Compensation Order, and is in the process of being returned to the Debtors. 

7. Deloitte Tax has received no promise of payment for professional services rendered or to 

be rendered in these cases other than in accordance with the provisions of the Bankruptcy Code. 

BASIS FOR RELIEF 

8. During the First Interim Period, professionals of Deloitte Tax devoted a total of 646.9 

hours to providing tax services to the Debtors. Schedules showing the name of each such professional, 

hours worked during the First Interim Period, and hourly billing rate are provided at the front of this 

Application. Deloitte Tax’s time records, allocated by category, listing the name of the professional, the 

2

date on which the services were performed, and the amount of time spent in performing the services, are 

attached as Exhibit A and summarized in Exhibit B. 

9. Deloitte Tax also maintains records of all actual and necessary expenses incurred in 

connection with its rendition of services for the Debtors. The summary of these expenses precedes this 

Application, and Exhibit C includes detail of expenses incurred during the First Interim Period. 

DESCRIPTION OF SERVICES RENDERED 

10. Deloitte Tax provides below an overview of the services it rendered as tax advisors for 

the Debtors during the First Interim Period. Detailed descriptions of these services, the amount of fees 

incurred, and the amount of hours spent providing services throughout the First Interim Period also are 

provided in the attached Exhibits. 

11. Deloitte Tax served or advised the Debtors in the following areas throughout the First 

Interim Period: 

Tax advice and related services, including advising on matters associated with tax effects of 

restructuring and bankruptcy and the Debtors’ post-restructuring tax profile, and other tax issues 

arising in connection with restructuring and bankruptcy, including tax basis attributes, 

cancellation of debt income, limitation on deductions, and general income tax provision and 

compliance assistance. 

Chapter 11 administration and related matters, including fee forecasting, engagement 

maintenance, and preparation and submission of fee applications. 

12. Specific and detailed descriptions of the services that Deloitte Tax provided 

throughout the First Interim Period are included in Exhibit A. Summaries of the fees incurred and time 

spent within each of the areas referenced above are provided in Exhibits B. 

ALLOWANCE OF COMPENSATION AND REIMBURSEMENT OF EXPENSES 

13. Because of the benefits realized by the Debtors, the nature of services provided, the 

amount of work done, the time consumed and the skill required, Deloitte Tax requests that it be allowed, 

on an interim basis, compensation for the professional services rendered during the First Interim Period in 

the sum of $329,621.00. 

3

14. Deloitte Tax has disbursed, and requests reimbursement for $1,445.76, which represents 

actual, necessary expenses incurred in the rendition of professional services in these cases. 

15. No agreement or understanding exists between Deloitte Tax and any other nonaffiliated 

person or persons for the sharing of compensation received or to be received for professional services 

rendered in or in connection with these cases. 

CERTIFICATE OF COMPLIANCE AND WAIVER 

16. Finally, the undersigned representative of Deloitte Tax certifies that Deloitte Tax has 

reviewed the requirements of Rule 2016-2 of the Local Rules of Bankruptcy Practice and Procedure of the 

United States Bankruptcy Court for the Southern District of New York (the “Local Rules”) and that the 

Application substantially complies with that Local Rule. To the extent that the Application does not 

comply in all respects with the requirements of Local Rule 2016-2 Deloitte Tax believes that such 

deviations are not material and respectfully requests that any such requirement be waived. 

4

WHEREFORE, Deloitte Tax respectfully requests that the Court (a) grant it allowance of 

compensation, on an interim basis, for professional services rendered as tax advisors for the Debtors 

during the First Interim Period in the sum of $329,621.00; (b) grant it reimbursement of actual and 

necessary expenses, on a an interim basis, incurred during the First Interim Period in the aggregate 

amount of $1,445.76; (c) authorize and direct payment to Deloitte Tax of the foregoing amounts in full, to 

the extent not already paid, and (d) grant such other and further relief as is just and proper. 

Dated: March 18, 2011 

McLean, Virginia 

Respectfully submitted, 

/s/_________________________________ 





Telephone: 703-251-3703 

Facsimile: 703-332-7282 

TAX ADVISORS FOR DEBTORS AND 

DEBTORS IN POSSESSION 

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In re: 

: 

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TERRESTAR NETWORKS, et al., 

: 

: 

Debtors. 

: 

: 

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Chapter 11 

Case No. 10-154466 (SHL) 

(Jointly Administered) 

CERTIFICATION OF GREGORY ANDERSON, 

DELOITTE TAX LLP PARTNER, IN SUPPORT OF 

DELOITTE TAX LLP’S FIRST INTERIM FEE APPLICATION 

GREGORY ANDERSON, deposes and says: 

1. I am a director of Deloitte Tax LLP (“Deloitte Tax”), which has an 

office located at 1750 Tysons Blvd., McLean, Virginia 22102-4219. I make this 

certification in support of its first interim fee application (the “Fee Application”) of 

Deloitte Tax, dated March 18, 2011 [Docket No. to be determined] in the abovecaptioned 

debtors’ (the “Debtors”) chapter 11 cases. 

2. I make this certification pursuant to the Court’s Administrative 

Order M-389 (the “Administrative Order”), the Amended Guidelines for Fees and 

Disbursements for Professionals in the Southern District of New York, dated April 19, 

1995 and the United States Trustee Guidelines for Reviewing Applications for 

Compensation and Reimbursement of Expenses Filed Under 11 U.S.C. 330 adopted on 

January 30, 1996 the “Guidelines”). 

3. In compliance with the Administrative Order, I hereby certify that: 

a. I have read the Fee Application;

. To the best of my knowledge, information and belief 

formed after reasonable inquiry, the fees and disbursements sought in the 

Fee Application are in substantial compliance with the Administrative 

Order and the Guidelines. 

c. The fees and disbursements sought in the Fee Application 

are billed at rates or in accordance with practice customarily employed by 

Deloitte Tax for similar services and generally accepted by Deloitte Tax’s 

clients. 

d. Deloitte Tax has not made a profit with respect to the 

expenses requested in the Fee Application. 

e. Deloitte Tax submitted monthly billing statements with 

respect to the amounts requested in the Fee Application and has received 

$43,516.00 from the Debtors with respect thereto. Of this amount, 

$8,689.42 was overpaid based on the terms of payments currently 

permissible under the terms of the Interim Compensation Order, and is in 

the process of being returned to the Debtors. 

f. Copies of the Fee Application were provided to the 

appropriate parties on the date set for the filing of fee applications by the 

Court in its order regarding interim compensation procedures. 

Dated: April 18, 2011 

____________________________________ 

Declarant: Gregory Anderson 

Title: Director 

2

EXHIBIT A

EXHIBIT A 

FIRST INTERIM CUMULATIVE TIME DETAIL 

Fee Application Summarizing Fees for the Fee Period October 19, 2010 through January 31, 2011 

By Deloitte Tax LLP, Tax Advisors for TerreStar Networks Inc., et al, Debtors 

Categorized and Sorted Alphabetically and Chronologically by Professional 

Date Work Description Hours Rate Fees 


Time Detail for Anderson, Gregory R 

10/21/10 Review client tax return in preparation for upcoming discussions. 1.1 730.00 $ 803.00 

10/22/10 Discuss with S. Tarrant, R. Davis, E. Kelly, D. Padilla, C. Reiff , and J. Damen section 

382 analysis, basis of TerreStar and TerreStar Networks, and cancellation of debt. 

0.9 730.00 657.00 

10/22/10 Prepare for call with S. Tarrant by reviewing net operating loss schedule and tax 

returns. 

10/26/10 Discuss with C. Brown, W. Hirzalla, S. Zelin of Blackstone, M. Boyle, S. Harrison, E. 

Kelly, and S. Tarrant tax attributes (net operating losses and capital gains carryovers) 

and impact of multiple scenarios with bankruptcy and restructuring including mergers 

and spin-offs. 

10/27/10 Discuss with E. Kelly and S. Harrison net operating losses and capital loss carryovers, 

including impact after restructuring. 

10/27/10 Discuss with C. Brown, W. Hirzalla, S, Zelin of Blackstone, S. Harrison, S. Tarrant, 

and E. Kelly net operating losses and capital losses, including which entities have them 

and how best to structure reorganization to maximize their utilization. 

0.2 730.00 146.00 

1.3 730.00 949.00 

0.8 730.00 584.00 

0.7 730.00 511.00 

10/27/10 Review existing tax attributes, including net operating losses and tax asset basis. 0.6 730.00 438.00 

10/28/10 Discuss with M. Boyle, E. Kelly, S. Tarrant, and S. Harrison alternative methods to use 0.7 730.00 511.00 

TerreStar capital loss carryforwards. 

10/28/10 Review capital loss carryforward schedules. 0.6 730.00 438.00 

10/29/10 Discuss with M. Schneider, S. Harrison, S. Tarrant, E. Kelly, M. Boyle, R. Davis, and 1.1 730.00 803.00 

J. Damen TerreStar tax structuring issues and concerns to preserve/utilize capital loss 

carryforward. 

11/01/10 Review net operating loss and tax attribute schedules. 2.1 730.00 1,533.00 

11/01/10 Discuss with H. Jacobson of Akin Gump interest limitation on debt. 0.7 730.00 511.00 

11/01/10 Review attribute reduction models. 1.0 730.00 730.00 

11/01/10 Discuss with H. Jacobson of Akin Gump, W. Hirzalla and C. Brown of Blackstone 0.7 730.00 511.00 

attribute reduction. 

11/01/10 Discuss with S. Harrison next steps as result of previous calls. 0.4 730.00 292.00 

11/08/10 Reseach and analyze attribute reduction and start-up costs. 1.4 730.00 1,022.00 

11/10/10 Discuss with V. Liocono tax provision. 1.2 730.00 876.00 

11/15/10 Research loss limitations and tax attributes. 0.9 730.00 657.00 

11/17/10 Discuss with G. Parasemeh tax attribute project and tax provision. 1.1 730.00 803.00 

11/18/10 Discuss with R. Davis, E. Kelly, S. Tarrant, S. Harrison, G. Anderson, C. Reiff section 0.6 730.00 438.00 

382, stock basis, tax basis balance sheet, worthless stock deduction and attribute 

reduction modeling work streams. 

11/18/10 Review tax basis balance sheet. 0.8 730.00 584.00 

11/18/10 Discuss with S. Harrison and E. Kelly bankruptcy organizational structure, upcoming 0.7 730.00 511.00 

meeting with TerreStar CFO, tax basis balance sheet, and issue regarding tax sharing 

agreement among TerreStar entities. 

11/19/10 Review intercompany debt schedules. 0.8 730.00 584.00 

11/19/10 Discuss with H. Jacobson of Akin Gump, T. Kelly, and S. Harrison tax attribute work 0.5 730.00 365.00 

and section 382 limitations. 

11/19/10 Review tax basis balance sheet for various entities. 1.1 730.00 803.00 

1

11/19/10 Review tax returns and tax attribute schedules in preparation for upcoming discussion 

with Akin Gump relating to tax attribute work and section 382 limitations. 

0.5 730.00 365.00 

11/23/10 Calculate tax basis and tax attribute. 0.9 730.00 657.00 

11/29/10 Review emails relating to tax attribute model. 0.6 730.00 438.00 

11/30/10 Discuss with W. Hirzalla and C. Brown of Blackstone and S. Tarrant tax issues related 1.0 730.00 730.00 

to net operating losses and section 382. 

11/30/10 Review net operating loss schedules. 0.2 730.00 146.00 

12/06/10 Discuss with G. Anderson, S.Tarrant, and C. Reiff open items, questions related to 0.7 730.00 511.00 

stock basis study, and worthless stock position related to Motient Services and Motient 

Communications. 


12/08/10 Discuss with S. Harrison and C. Stowe approval of engagement letter for retention 0.8 730.00 584.00 

purposes. 

12/13/10 Discuss with T. Kelly tax basis balance sheet. 0.9 730.00 657.00 

12/15/10 Read and comment on revised retention affadavit. 1.0 730.00 730.00 

12/22/10 Review tax basis analysis and attribute schedule in preparation for upcoming 

1.5 730.00 1,095.00 

discussion with Akin Gump. 

12/22/10 Discuss with H. Jacobson of Akin Gump and S. Tarrant tax issues regarding TerreStar 0.8 730.00 584.00 

Networks net operating losses. 

01/04/11 Discuss with V. Loiacono, G. Premsingh, and D. Brandon of TerreStar Corporation, 1.7 730.00 1,241.00 

and M. Schneider, E. Kelly, and S. Tarrant tax structuring and net operating loss 

utilization post bankruptcy for TerreStar. 

01/04/11 Prepare for meeting by reviewing tax basis balance sheet and attribute reduction 

0.8 730.00 584.00 

schedules. 

01/11/11 Discuss with W. Hirzalla of Blackstone, H. Jacobson of Akin Gump, and S. Joffe of 2.3 730.00 1,679.00 

FTI Consulting, and S. Tarrant section 382 ownership questions related to TerreStar 

Networks. 

01/11/11 Review intercompany debt schedule to consider tax treatment of settlement. 1.2 730.00 876.00 

01/12/11 Review tax basis balance sheet, basis of satellite and ground stations. 1.9 730.00 1,387.00 

01/12/11 Review tax projection schedule and book to tax differences. 2.1 730.00 1,533.00 

01/13/11 Review capitalized organization costs. 0.9 730.00 657.00 

01/19/11 Discuss with H. Jacobson of Akin Gump and S. Tarrant net operating loss limitation 1.1 730.00 803.00 

and other attribute questions. 

01/20/11 Discuss with S. Goldring of Weil Gotshal, H. Jacobson of Akin Gump, S. Tarrant, S. 1.8 730.00 1,314.00 

Harrison, M. Boyle, and J. Damen net operating loss, section 382, and cancellation of 

debt tax issues. 

01/25/11 Discuss with S. Tarrant reorganization questions to preserve net operating losses of 0.9 730.00 657.00 

Motient Communications, TerreStar Networks, and Motient Services. 

Total: Anderson, Gregory R 46.5 hours $ 33,945.00 

Time Detail for Banks, Anthony Douglas 

10/29/10 Attend meeting with S. Harrison and M. Boyle regarding tax consequences of 

bankruptcy filing of TerreStar Networks, Inc. and subsidiaries. 

11/16/10 Read TerreStar's financial statements looking for information regarding pre-petition 

lenders and credit agreements. 

2.7 305.00 $ 823.50 

1.6 305.00 488.00 

Total: Banks, Anthony Douglas 4.3 hours $ 1,311.50 

Time Detail for Bauer, Maureen Caitlin 

10/21/10 Research declarations, motions, and petitions from first day filing. 1.3 305.00 $ 396.50 

Total: Bauer, Maureen Caitlin 1.3 hours $ 396.50 

2

Time Detail for Boyle, Matthew Scott 

10/26/10 Prepare for upcoming discussion regarding proposed bankruptcy transaction, including 

reviewing bankruptcy filing and related public documents. 

10/26/10 Discuss with C. Brown, W. Hirzalla, S. Zelin of Blackstone, G. Anderson, S. Harrison, 

E. Kelly, and S. Tarrant tax attributes (net operating losses and capital gains 

carryovers) and impact of multiple scenarios with bankruptcy and restructuring 

including mergers and spin-offs. 

10/27/10 Prepare list of restructuring highlights, including company overview, debt, assets, tax 

attributes and potential bankruptcy issues. 

10/27/10 Discuss with R. Davis, S. Harrison and C. Reiff potential need for stock basis study as 

part of attribute reduction modeling exercise. 

10/28/10 Research intercompany debt issues as follow up from discussion with S. Harrison, 

including researching intercompany debt. 

10/28/10 Discuss with G. Anderson, E. Kelly, S. Tarrant, and S. Harrison alternative methods to 

use TerreStar capital loss carryforwards. 

0.9 515.00 $ 463.50 

1.0 515.00 515.00 

2.1 515.00 1,081.50 

0.5 515.00 257.50 

1.1 515.00 566.50 

0.7 515.00 360.50 

10/29/10 Research TerreStar Networks intercompany debt. 1.0 515.00 515.00 

10/29/10 Participate in portion of discussion with S. Harrison, G. Anderson, M. Schneider, S. 

Tarrant, E. Kelly, R. Davis, and J. Damen regarding restructuring issues and ability to 

preserve tax attributes and capital loss carryforwards. 

0.7 515.00 360.50 


11/03/10 Discuss with S. Harrison next steps on bankruptcy structuring and modeling. 0.6 515.00 309.00 

11/03/10 Discuss with H. Jacobson and S. Naegel of Akin Gump, R. Reinhold of Willkie, M. 

Schneider, S. Harrison, G. Anderson, M. Boyle, and E. Kelly restructuring and net 

operating losses. 

1.0 515.00 515.00 

11/03/10 Review e-mail communications regarding recent discussion relating to restructuring 0.9 515.00 463.50 

and net operating losses and updates on project status. 

11/04/10 Review and revise cancellation of debt model workflow and workplan for upcoming 1.6 515.00 824.00 

discussion. 

11/04/10 Review cancellation of debt at TerreStar Networks calculation within bankruptcy 

1.2 515.00 618.00 

model. 

11/09/10 Discuss and update with J. Dudek workflow plan. 1.2 515.00 618.00 

11/09/10 Read bankruptcy disclosure statement from Akin Gump. 0.6 515.00 309.00 

11/10/10 Read classification of claims and interests section of disclosure statement to determine 1.1 515.00 566.50 

priority of certain liabilities in the bankruptcy case. 

11/10/10 Discuss with S. Harrison and J. Dudek cancellation of debt model workplan and 

0.7 515.00 360.50 

progress. 

11/10/10 Prepare for E. Kelly sample analysis regarding intercompany balance detail required 0.7 515.00 360.50 

for attribute reduction analysis. 

11/10/10 Correspond with T. Kelly regarding balance sheet and intercompany balance detail 0.6 515.00 309.00 

needed from compliance team. 

11/11/10 Compare tax disclosure statement to other disclosures, including preparing comments 2.1 515.00 1,081.50 

per comparison. 

11/12/10 Read restructuring support agreement filed on 10/19/10. 1.2 515.00 618.00 

11/12/10 Read debtor in possession (DIP) financing agreement to determine proper treatment 0.8 515.00 412.00 

and amounts of DIP financing to the Debtors. 

12/08/10 Discuss with J. Dudek information needs from Deloitte Baltimore and TerreStar 

0.8 515.00 412.00 

management. 

01/20/11 Discuss with S. Goldring of Weil Gotshal, H. Jacobson of Akin Gump, S. Tarrant, G. 

Anderson, J. Damen, and S. Harrison net operating loss, section 382, and cancellation 

of debt tax issues. 

1.8 515.00 927.00 

01/20/11 Review status of cancellation of debt modeling relating to disallowed interest 

0.8 515.00 412.00 

calculations. 

01/27/11 Review updates to cancellation of debt calculation model. 0.5 515.00 257.50 

Total: Boyle, Matthew Scott 26.8 hours $ 13,802.00 

3

Time Detail for Carr, Joseph G 

11/10/10 Discuss with B. Sullivan and S. Frishman state tax issues relating to bankruptcy. 0.5 730.00 $ 365.00 

Total: Carr, Joseph G 0.5 hours $ 365.00 

Time Detail for Carrington, Trevor Max 

10/27/10 Prepare access letters to send to V. Loiacono at TerreStar and S. Zelin Blackstone. 1.0 305.00 $ 305.00 

10/28/10 Discuss with representative at state of New York tax notice received by TerreStar 

2.0 305.00 610.00 

relating to filing New York CT-240 for year ended 12/31/07. 

11/15/10 Prepare trial balance for tax basis balance sheet. 1.5 305.00 457.50 

12/17/10 Respond to notice from state of North Carolina regarding computation of income tax. 0.6 305.00 183.00 

01/14/11 Document intercompany transactions for TerreStar and subsidiaries. 2.7 305.00 823.50 

01/14/11 Prepare schedule regarding tax payments made by each entity, per state. 1.0 305.00 305.00 

Total: Carrington, Trevor Max 8.8 hours $ 2,684.00 

Time Detail for Damen, John Dewey 

10/20/10 Review draft of third quarter 382 update memorandum. 1.9 515.00 $ 978.50 

10/21/10 Review Harbinger higher-tier inquiry and potential impact to cumulative ownership 1.8 515.00 927.00 

shift computation 

10/22/10 Reconcile Terre star Corp. ownership to Blackstone's TerreStar Corp. ownership 

1.3 515.00 669.50 

schedule by class. 

10/27/10 Analyze preferred series C and D and potential impact to cumulative ownership shift 1.8 515.00 927.00 

percentage. 

10/29/10 Discuss with S. Tarrant potential (l)(5)(l)(6) analysis, value under (l)(6), and potential 2.2 515.00 1,133.00 

interest haircut. 

11/03/10 Perform detail review of section 382 shift analysis. 2.6 515.00 1,339.00 

11/04/10 Perform sensitivity testing to determine impact of fluctuations in value for 382 

2.7 515.00 1,390.50 

analysis. 

11/05/10 Discuss with D. Padilla, C. Reiff, S. Harrison, J. Damen work plans for stock basis, 1.0 515.00 515.00 

section 382, cancellation of debt, and worthless stock work streams. 

11/05/10 Prepare section 382 workplan. 1.2 515.00 618.00 

11/09/10 Review TerreStar Networks section 382 computation and assumptions. 1.1 515.00 566.50 

11/19/10 Discuss and review with D. Padilla TerreStar Networks net unrealized built-in gain 2.2 515.00 1,133.00 

calculation. 

11/22/10 Discuss with D. Padilla section 382 computation. 0.7 515.00 360.50 

11/22/10 Review and prepare consolidated net unrealized built-in gain computation. 2.6 515.00 1,339.00 

11/23/10 Review cumulative book to tax differences. 2.1 515.00 1,081.50 

11/24/10 Calculate consolidated net unrealized built-in loss. 1.7 515.00 875.50 

11/29/10 Prepare comprehensive section 382 memorandum, documenting ownership shift 

2.9 515.00 1,493.50 

analysis. 

11/29/10 Prepare comprehensive section 382 memorandum, documenting section 382 limitation 2.7 515.00 1,390.50 

analysis. 

11/30/10 Prepare comprehensive section 382 memorandum, documenting fluctuation of value 2.2 515.00 1,133.00 

methodology. 

12/01/10 Prepare comprehensive section 382 memorandum. 2.8 515.00 1,442.00 

12/01/10 Discuss and analyze with D. Padilla application of 382(l)(3)(C) to five percent 

2.1 515.00 1,081.50 

shareholder in section 382 analysis. 

12/02/10 Review 1502-92 issue for section 382 calculation. 1.4 515.00 721.00 

12/06/10 Perform technical research on 1.382-k(2) related to actual knowledge/duty to inquire 1.8 515.00 927.00 

of Harbinger. 

12/06/10 Discuss with S. Tarrant, M. Schneider, and D. Padilla section 382 technical issues 

related to higher tier inquiries and section 382 testing at TerreStar Networks level. 

0.7 515.00 360.50 

12/09/10 Update section 382 memorandum and documentation regarding 92(c) subgroup issue. 2.2 515.00 1,133.00 

4

12/17/10 Review details of section 382 memorandum. 1.3 515.00 669.50 

12/18/10 Prepare detailed list of open items regarding treatment of Harbinger and Solus as five 0.4 515.00 206.00 

percent shareholders. 

01/10/11 Update consolidated net unrealized built-in gain computation. 2.4 515.00 1,236.00 

01/11/11 Update consolidated net unrealized built-in gain. 2.7 515.00 1,390.50 

01/18/11 Review ownership shift computation and analysis of form 15-12G filed on 01/14/11. 1.8 515.00 927.00 

01/19/11 Discuss with S. Tarrant, M. Schneider, S. Harrison TerreStar section 382 and 

1.3 515.00 669.50 

cancellation of debt issues. 

01/19/11 Analyze and prepare summary schedule to illustrate potential shift of TerreStar Corp. 2.4 515.00 1,236.00 

and TerreStar Networks under hold-constant methodology. 

01/19/11 Update section 382 computation for hypothetical bankruptcy conversion transaction. 1.7 515.00 875.50 

01/20/11 Discuss with S. Goldring of Weil Gotshal, H. Jacobson of Akin Gump, S. Tarrant, G. 

Anderson, M. Boyle, and S. Harrison net operating loss, section 382, and cancellation 

of debt tax issues. 

01/20/11 Update section 382 analysis for OZ Management and Goldman Sachs as emerging new 

five-percent shareholders. 

01/20/11 Update section 382 analysis for OZ Management and Goldman Sachs as emerging new 

five-percent shareholders, including computing revised ownership shift. 

1.8 515.00 927.00 

1.3 515.00 669.50 

2.9 515.00 1,493.50 

01/20/11 Analyze preferred B shareholder listing to determine potential emergence as new five 0.4 515.00 206.00 

percent shareholder for section 382 purposes. 

01/21/11 Update section 382 ownership shift computation for Harbinger based on new 

2.7 515.00 1,390.50 

Harbinger filing. 

01/21/11 Perform detailed review of Harbinger 13D filed 01/20/11 and its potential impact for 0.7 515.00 360.50 

section 382 purposes. 

01/21/11 Discuss with S. Tarrant and D. Padilla Harbinger 13D filing reporting sale of preferred 0.4 515.00 206.00 

stock and its impact on ownership shift computation. 

01/21/11 Perform analysis of hold constant methodology and potential to avoid ownership 

0.4 515.00 206.00 

change based on Harbinger filing. 

01/25/11 Discuss with S. Tarrant and D. Brandon information related to current series B 

0.4 515.00 206.00 

shareholders of TerreStar Corporation to determine if ownership change has occurred 

at TerreStar Networks. 

Total: Damen, John Dewey 70.7 hours $ 36,410.50 

Time Detail for Davis, Richard Trippe 

10/27/10 Discuss with S. Harrison, M. Boyle, C. Reiff preparation for full tax stock basis study. 0.5 730.00 $ 365.00 

10/27/10 Review basis study information. 0.5 730.00 365.00 

11/09/10 Review history of Terre star entities. 1.2 730.00 876.00 

11/18/10 Prepare for section 382, net operating loss, tax basis, and bankruptcy call by review 0.6 730.00 438.00 

TerreStar Networks stock basis computation. 




Total: Davis, Richard Trippe 3.4 hours $ 2,482.00 

Time Detail for Dudek Jr , John W 

10/19/10 Research filings and related documents regarding client's bankruptcy. 1.1 390.00 $ 429.00 

10/25/10 Read "Treatment of Claims and Interests Under the Plan" section of term sheet for 2.7 390.00 1,053.00 

TerreStar restructuring. 

10/25/10 Read "Rights Offering" section of term sheet for TerreStar restructuring. 0.8 390.00 312.00 

10/26/10 Research treasury regulation 1.1502-11(c) for TerreStar. 2.5 390.00 975.00 

10/27/10 Update treasury regulation 1.1502-21 allocation to include 12/31/09 taxable income 

information. 

0.8 390.00 312.00 

5

11/02/10 Read first day motions filed by TerreStar Networks, Inc. regarding the capital 

2.6 390.00 1,014.00 

structure. 

11/02/10 Read first day motions filed by TerreStar Networks, Inc. regarding debtor in 

1.6 390.00 624.00 

possession financing. 

11/03/10 Update attribute reduction model for new facts about restructuring of TerreStar 

2.8 390.00 1,092.00 

Networks. 

11/03/10 Compile debt restructuring draft workplan. 2.1 390.00 819.00 

11/05/10 Review inputs into attribute reduction model. 1.4 390.00 546.00 

11/09/10 Review TerreStar Networks term sheet. 2.4 390.00 936.00 

11/09/10 Read TerreStar Networks restructuring support agreement. 2.2 390.00 858.00 

11/09/10 Research application of downstream merger as part of restructuring. 1.3 390.00 507.00 

11/09/10 Discuss with M. Boyle workplan and outstanding items relating to attribute reduction. 0.7 390.00 273.00 

11/10/10 Read Rail Joint Company versus Commissioner of the Internal Revenue Service case. 2.9 390.00 1,131.00 

11/10/10 Review high yield debt obligation calculation, comparing same to book value of debt 1.5 390.00 585.00 

outstanding. 

11/11/10 Update attribute reduction model to take into account effects of possible downstream 1.3 390.00 507.00 

merger and utilization of capital loss carryovers. 

11/11/10 Update TerreStar Networks attribute reduction analysis. 0.8 390.00 312.00 

11/15/10 Research premium on repurchase of debt instruments. 2.4 390.00 936.00 

11/15/10 Read and review applicable case law regarding deduction for repurchase of debt 

2.3 390.00 897.00 

instruments. 

11/16/10 Update footnotes related to net operating loss utilization schedule in attribute reduction 2.4 390.00 936.00 

model. 

11/16/10 Research downstream merger of Motient Holdings into TerreStar Networks. 1.3 390.00 507.00 

11/16/10 Update net operating loss utilization schedule in attribute reduction model. 2.6 390.00 1,014.00 

11/17/10 Update model related to de facto liquidation of Motient Services. 2.8 390.00 1,092.00 

11/17/10 Change 1.1502-21 allocation of net operating losses if good de facto liquidation did 2.7 390.00 1,053.00 

not occur. 

11/17/10 Read cases regarding deduction of repurchase premium related to debt instruments. 1.1 390.00 429.00 

11/18/10 Recalculate attributes reduced due to cancellation of debt income. 2.6 390.00 1,014.00 

11/18/10 Review model to ensure updates for net operating losses are flowing correctly. 2.5 390.00 975.00 

11/19/10 Read motion by Debtors' group to exclude several entities from bankruptcy filing. 2.2 390.00 858.00 

11/19/10 Update attribute reduction pages in model. 0.8 390.00 312.00 

11/19/10 Review 1.1502-21 allocation to ensure net operating losses are calculating correctly. 1.9 390.00 741.00 

11/29/10 Read bankruptcy restructuring term sheet. 2.5 390.00 975.00 

11/29/10 Update attribute reduction model for changes to upstream merger consideration. 1.1 390.00 429.00 

11/30/10 Read worthless stock deduction rules. 2.6 390.00 1,014.00 

11/30/10 Read bankruptcy disclosure statement. 2.2 390.00 858.00 

11/30/10 Update attribute reduction model for net operating loss changes. 1.8 390.00 702.00 

12/01/10 Read summary of classification of claims and interests under plan for TerreStar 

1.7 390.00 663.00 

Networks Inc. 

12/01/10 Read classification and treatment of claims and interests for TerreStar Networks Inc. 2.2 390.00 858.00 

12/01/10 Update attribute reduction model for change in debtor group. 1.9 390.00 741.00 

12/07/10 Review repurchase premium documentation. 1.3 390.00 507.00 

12/08/10 Compile list of missing information for attribute reduction model. 1.4 390.00 546.00 

12/08/10 Discuss with M. Boyle missing information for TerreStar Networks model. 0.8 390.00 312.00 

12/15/10 Compile assumptions document for attribute reduction model. 2.6 390.00 1,014.00 

12/20/10 Review stock basis study. 0.9 390.00 351.00 

12/21/10 Research applicable high yield debt instrument and cancellation of debt income. 2.4 390.00 936.00 

12/21/10 Input stock basis numbers into model. 1.6 390.00 624.00 

12/22/10 Compile research for internal memo related to interest decutions. 2.6 390.00 1,014.00 

12/22/10 Prepare internal memo related to interest deductions. 2.7 390.00 1,053.00 

01/04/11 Prepare documentation for attribute reduction calculation. 1.2 390.00 468.00 

01/05/11 Review net operating loss utilization table. 1.3 390.00 507.00 

6

01/13/11 Update internal revenue code section 382(l)(5) interest haircut portion of TerreStar 1.5 390.00 585.00 

Networks model. 

01/14/11 Update layered net operating loss utilization schedule in TerreStar Networks model. 1.6 390.00 624.00 

Total: Dudek Jr , John W 97.0 hours $ 37,830.00 

Time Detail for Frishman, Scott P 

11/10/10 Review state provision workpapers. 0.7 590.00 $ 413.00 

Total: Frishman, Scott P 0.7 hours $ 413.00 

Time Detail for Gardner, Rebecca Lynn 

01/05/11 Prepare TerreStar Networks 12/31/10 tax provision workpaper for 263A book to tax 

difference. 

1.3 285.00 $ 356.25 

01/21/11 Review North Carolina state income tax notice. 0.8 285.00 228.00 

Total: Gardner, Rebecca Lynn 2.1 hours $ 584.25 

Time Detail for Harrison, Stephen C 

10/25/10 Review restructuring term sheet for TerreStar Networks. 1.4 590.00 $ 826.00 

10/26/10 Review draft proposed term sheet for transaction. 0.3 590.00 177.00 

10/26/10 Discuss with C. Brown, W. Hirzalla, S. Zelin of Blackstone, G. Anderson, M. Boyle, 1.0 590.00 590.00 

E. Kelly, and S. Tarrant tax attributes (net operating losses and capital gains 



10/26/10 Discuss with M. Boyle updated impact of transaction to cancellation of debt 

0.6 590.00 354.00 

model/attribute reduction model. 

10/27/10 Discuss with C. Brown, W. Hirzalla, S, Zelin of Blackstone, G. Anderson, S. Tarrant, 

and E. Kelly net operating losses and capital losses, including which entities have them 

and how best to structure reorganization to maximize their utilization. 

0.7 590.00 413.00 

10/27/10 Discuss with C. Brown, W. Hirzalla, and S. Zelin of Blackstone and M. Boyle 

proposed restructuring transaction and tax attributes available in the transaction. 

0.6 590.00 354.00 

10/27/10 Discuss with R. Davis, and M. Boyle potential need for stock basis study as part of 0.5 590.00 295.00 

attribute reduction modeling exercise. 

10/28/10 Discuss with C. Brown, W. Hirzalla, and S. Zelin of Blackstone; A. Preis and I. 

1.0 590.00 590.00 

Dizengoff of Akin Gump; and G. Anderson, S. Tarrant, E. Kelly, and M. Boyle 

preservation of capital loss and related strategies. 

10/28/10 Review section 368 and loss carryforward schedules. 0.3 590.00 177.00 

10/28/10 Discuss with G. Anderson, E. Kelly, and S. Tarrant alternative methods to utilize 

0.6 590.00 354.00 

capital loss within TerreStar structure. 

10/29/10 Discuss with M. Schneider, G. Anderson, S. Tarrant, E. Kelly, M. Boyle, R. Davis, and 1.1 590.00 649.00 

J. Damen TerreStar tax structuring issues and concerns to preserve/utilize capital loss 

carryforward. 

10/29/10 Review COD computation to prepare for call with representatives from Blackstone and 0.3 590.00 177.00 

Akin and Gump. 

11/01/10 Review net operating loss and tax attribute schedules. 0.7 590.00 413.00 

11/01/10 Discuss with W. Hirzalla and C. Brown of Blackstone restructuring possibilities and 

tax implications on tax attributes and deductibility of applicable high yield discount 

obligation deferred interest when paid by equity on cancellation of debt. 

0.7 590.00 413.00 


11/01/10 Discuss with H. Jacobson of Akin Gump restructuring possibilities and tax 

implications on tax attributes and deductibility of applicable high yield discount 


0.7 590.00 413.00 

7

11/01/10 Research tax issues discussed with TerreStar and creditor advisors, including 

0.9 590.00 531.00 

applicable high-yield discount obligation implications and calculation of cancellation 

of debt income on various debt instruments. 

11/01/10 Discuss with G. Anderson next steps as result of previous calls. 0.4 590.00 236.00 


11/05/10 Discuss with W. Hirzalla and C. Brown of Blackstone, H. Jacobson of Akin Gump, 0.9 590.00 531.00 

and S. Joffe of FTI regarding TerreStar bankruptcy tax characteristics. 



11/05/10 Review cancellation of debt income, attribute reduction, and bankruptcy modeling 0.4 590.00 236.00 

issues. 

11/05/10 Review attribute schedules by company. 0.1 590.00 59.00 

11/05/10 Discuss with B. Sullivan and S. Tarrant state income tax issues associated with 

0.5 590.00 295.00 

TerreStar bankruptcy, including state section 382 analysis and state income tax impacts 

of cancellation of debt income. 

11/08/10 Research application of internal revenue code section 1017 to start-up costs and 

whether a position exists to exclude those costs from attribute reduction calculations. 

1.2 590.00 708.00 

11/18/10 Review draft disclosure document from Akin Gump. 0.8 590.00 472.00 

11/18/10 Discuss with G. Anderson and E. Kelly bankruptcy organizational structure, upcoming 0.7 590.00 413.00 

meeting with TerreStar CFO, tax basis balance sheet, and issue regarding tax sharing 

agreement among TerreStar entities. 




11/19/10 Review disclosure agreement provided by Blackstone. 0.8 590.00 472.00 

11/19/10 Discuss with W. Hirzalla and C. Brown of Blackstone update of negotiations on 

0.5 590.00 295.00 

TerreStar bankruptcy transaction. 

11/30/10 Discuss with W. Hirzalla and C. Brown of Blackstone and S. Joffe of FTI section 382, 

stock trading restrictions, and impact to TerreStar Networks net operating losses. 

1.1 590.00 649.00 

11/03/11 Discuss with M. Boyle next steps on bankruptcy structuring and modeling. 0.6 590.00 354.00 

11/03/11 Discuss with H. Jacobson and S. Naegel of Akin Gump, R. Reinhold of Willkie, M. 1.0 590.00 590.00 




12/28/10 Discuss with W. Hirzalla of Blackstone potential changes to TerreStar transaction, 1.3 590.00 767.00 

including potential tax impacts to various sale scenarios and related attribute reduction 

concerns. 

01/19/11 Discuss with S. Tarrant, M. Schneider, J. Damen TerreStar section 382 and 

1.3 590.00 767.00 


01/19/11 Review section 382 and cancellation of debt files provided by J. Damen in preparation 0.6 590.00 354.00 

for upcoming discussion. 

01/19/11 Research deductibility of interest under section 163(e) and relationship to cancellation 1.2 590.00 708.00 

of debt calculations. 

01/20/11 Discuss with S. Goldring of Weil Gotshal, H. Jacobson of Akin Gump, S. Tarrant, G. 1.8 590.00 1,062.00 

Anderson, M. Boyle, and J. Damen net operating loss, section 382, and cancellation of 


01/20/11 Research application of section 163(e) to calculation of cancellation of debt income. 1.5 590.00 885.00 

8

01/20/11 Discuss with H. Jacobson of Akin Gump calculation of cancellation of debt income 1.4 590.00 826.00 

and impact of section 163(e) to that calculation. 

01/21/11 Review updates of attribute reduction computation provided by M. Boyle. 0.6 590.00 354.00 

Total: Harrison, Stephen C 32.5 hours $ 19,175.00 

Time Detail for He, Lipeng 

11/29/10 Research consolidated net unrealized built in gain tax question. 0.5 515.00 $ 257.50 

01/20/11 Research consolidated net unrealized built-in gain issue. 0.8 515.00 386.25 

Total: He, Lipeng 1.3 hours $ 643.75 

Time Detail for Kelly, Edward T 

10/19/10 Adjust section 195 calculations on 09/30/10 tax basis balance sheet for Debtor entities. 0.5 590.00 $ 295.00 

10/22/10 Discuss with S. Tarrant, R. Davis, G. Anderson, D. Padilla, C. Reiff , and J. Damen 

section 382 analysis, basis of TerreStar and TerreStar Networks, and cancellation of 

debt. 

10/26/10 Discuss with C. Brown, W. Hirzalla, S. Zelin of Blackstone, G. Anderson, M. Boyle, 

S. Harrison, and S. Tarrant tax attributes (net operating losses and capital gains 



10/27/10 Discuss with G. Anderson and S. Harrison net operating losses and capital loss 

carryovers, including impact after restructuring. 

10/27/10 Discuss with C. Brown, W. Hirzalla, S, Zelin of Blackstone, G. Anderson, S. Tarrant, 

and S. Harrison net operating losses and capital losses, including which entities have 

them and how best to structure reorganization to maximize their utilization. 

0.8 590.00 472.00 

0.9 590.00 531.00 

0.8 590.00 472.00 

0.7 590.00 413.00 

10/28/10 Discuss with G. Anderson, S. Harrison, and S. Tarrant alternative methods to utilize 0.6 590.00 354.00 


10/29/10 Discuss with M. Schneider, G. Anderson, S. Tarrant, S. Harrison, M. Boyle, R. Davis, 1.1 590.00 649.00 

and J. Damen TerreStar tax structuring issues and concerns to preserve/utilize capital 

loss carryforward. 

10/29/10 Review tax basis balance sheet in preparation for discussion with S. Tarrant. 0.2 590.00 118.00 




0.7 590.00 413.00 




11/01/10 3) Discuss with R. Reinhold of Wilke, G. Anderson, S. Harrison restructuring 

possibilities and tax implications on tax attributes and deductibility of applicable high 

yield discount obligation deferred interest when paid by equity on cancellation of debt. 

0.7 590.00 413.00 

0.4 590.00 236.00 

11/02/10 Compile net operating loss schedule and review tax basis assets in preparation for 

2.7 590.00 1,593.00 

discussion with Blackstone and Akin Gump regarding restructuring and net operating 

losses. 




11/03/10 Review net operating loss and tax basis schedules. 1.4 590.00 826.00 

11/17/10 Adjust applicable high-yield discount obligation calculations and balance sheet in 

0.5 590.00 295.00 

relation to tax basis balance sheet for TerreStar Networks. 

11/18/10 Discuss with G. Anderson and S. Harrison bankruptcy organizational structure, 

upcoming meeting with TerreStar CFO, tax basis balance sheet, and issue regarding 

tax sharing agreement among TerreStar entities. 

0.7 590.00 413.00 

9




11/18/10 Review tax basis balance sheets. 0.5 590.00 295.00 

11/19/10 Review tax basis balance sheet in preparation for upcoming meeting with Blackstone. 0.3 590.00 177.00 

11/19/10 Discuss with W. Hirzalla and C. Brown of Blackstone tax attribute work and section 0.5 590.00 295.00 

382 limitation. 


11/19/10 Discuss with H. Jacobson of Akin Gump tax attribute work and section 382 limitations. 1.0 590.00 590.00 

11/19/10 Discuss and review with G. Premsingh tax basis balance sheet, 2009 provision 

1.4 590.00 826.00 

deferred workpapers to prepare calculations for basis through 09/30/10. 

11/22/10 Discuss with N. Stokes updates to TerreStar Networks' tax basis balance sheet. 2.4 590.00 1,416.00 

11/22/10 Review tax basis balance sheet for TerreStar Networks, including calculating interest 0.8 590.00 472.00 

capitalization. 

11/22/10 Review tax basis balance sheet, including uniform capitalization calculation. 0.6 590.00 354.00 

11/23/10 Gather information relating to section 382 limitations with net operating losses. 1.4 590.00 826.00 

11/23/10 Review consolidated taxable income for tax basis balance sheet. 1.3 590.00 767.00 

11/29/10 Prepare satellite tax basis schedule. 1.2 590.00 708.00 

11/29/10 Update tax basis balance sheet for non-debtor entities for adjustments to trial balance 2.8 590.00 1,652.00 

effecting book to tax differences. 

11/30/10 Prepare book tax adjustments for tax basis balance sheet. 2.1 590.00 1,239.00 

11/30/10 Update tax basis balance sheet for debtor entities for adjustments to 09/30/10 trial 

1.9 590.00 1,121.00 

balances. 

12/01/10 Review analysis for tax basis balance sheet. 1.8 590.00 1,062.00 

12/01/10 Update interest capitalization calculation. 2.2 590.00 1,298.00 

12/02/10 Review depreciation analysis for tax basis balance sheet. 1.5 590.00 885.00 

12/02/10 Review tax basis balance sheet for changes to book tax adjustments. 2.5 590.00 1,475.00 

12/03/10 Update intercompany debt schedule. 1.3 590.00 767.00 

12/03/10 Review trial balance, adjusting tax basis balance sheet based on changes to book to tax 2.7 590.00 1,593.00 

adjustments. 

12/13/10 Discuss with G. Anderson tax basis balance sheet 0.9 590.00 531.00 

12/13/10 Review information required to prepare capitalized costs analysis. 1.7 590.00 1,003.00 

12/13/10 Meet with G. Premsingh to assist with tax basis balance sheet analysis for Debtors 2.4 590.00 1,416.00 

entities. 

12/14/10 Update tax basis balance sheet for TerreStar Networks, analyzing net operating losses. 2.9 590.00 1,711.00 

12/14/10 Review TerreStar Networks tax basis balance sheet changes from N. Stokes. 1.1 590.00 649.00 

12/15/10 Prepare tax basis balance sheet, including rollforward of satellite basis. 2.9 590.00 1,711.00 

12/16/10 Analyze capitalized costs for TerreStar Networks tax basis balance sheet. 2.4 590.00 1,416.00 


and M. Schneider, G. Anderson, and S. Tarrant tax structuring and net operating loss 


01/04/11 Prepare data related to net operating losses and tax basis balance sheet in preparation 2.4 590.00 1,416.00 

for meeting with client. 

01/05/11 Analyze TerreStar Networks tax basis balance sheet adjustments related to updates to 1.9 590.00 1,121.00 

section 195 calculation. 

01/06/11 Prepare tax basis balance sheet update. 2.6 590.00 1,534.00 

01/07/11 Prepare tax basis balance sheet including rollforward of section 195 costs. 2.4 590.00 1,416.00 

01/10/11 Finalize tax basis balance sheet for TerreStar Networks by updating schedules based 2.9 590.00 1,711.00 

on adjusted balances for book to tax differences. 

01/17/11 Make adjustments to tax basis balance sheet for TerreStar Networks, including 

1.3 590.00 767.00 

adjustments to satellite basis and section 195 costs. 

Total: Kelly, Edward T 74.2 hours $ 43,778.00 

10

Time Detail for Laskovics, Matthew Stephen 

10/27/10 Update and complete capital change analysis for tax years 1999 to 2009. 1.5 390.00 $ 585.00 

10/27/10 Discuss with C. Reiff tax basis work plan. 0.6 390.00 234.00 

10/28/10 Review and update basis data for tax years 1999 to 2009. 1.4 390.00 546.00 

10/29/10 Update basis data for tax years 1999 to 2009, based on review notes. 0.3 390.00 117.00 

10/29/10 Edit transmittal letter. 0.4 390.00 156.00 

11/24/10 Research 5471 companies, including TerreStar Canada, making changes to basis 

2.8 390.00 1,092.00 

report. 

11/24/10 Research 5471 companies, including TerreStar Global, making changes to basis report. 1.2 390.00 468.00 

12/01/10 Update transmittal letter to client. 1.2 390.00 468.00 

12/19/10 Update capital distributions and capital contributions data. 0.7 390.00 273.00 

12/20/10 Prepare positive investment adjustment analysis. 0.9 390.00 351.00 

12/21/10 Complete positive investment analysis changes. 0.5 390.00 195.00 

Total: Laskovics, Matthew Stephen 11.5 hours $ 4,485.00 

Time Detail for Ota, Mana Kate 

11/16/10 Update parent and subsidiary limit calculations to include foreign liabilities, tax assets, 

and gain allocation to U.S. and foreign assets for section 382 study. 

1.6 565.00 $ 904.00 

Total: Ota, Mana Kate 1.6 hours $ 904.00 

Time Detail for Padilla, Dana Agnes 

10/20/10 Review series C and Series D stock terms. 1.4 390.00 $ 546.00 

10/20/10 Update section 382 memo. 1.8 390.00 702.00 

10/22/10 Prepare for update call by determining open items and status of section 382 analysis. 0.3 390.00 117.00 

10/22/10 Discuss with S. Tarrant, R. Davis, G. Anderson, E. Kelly, C. Reiff , and J. Damen 

0.9 390.00 351.00 

section 382 analysis, basis of TerreStar and TerreStar Networks, and cancellation of 

debt. 

11/04/10 Update section 382 model for hypothetical redemption transaction. 1.3 390.00 507.00 



11/05/10 Update steps in section 382 workplan. 0.8 390.00 312.00 

11/09/10 Discuss with S. Tarrant, C. Reiff, and P. Welsh basis workplan and steps. 1.0 390.00 390.00 

11/09/10 Review TerreStar 09/30/10 trial balances and 12/31/09 tax basis balance sheets to 

0.8 390.00 312.00 

compute section 382 limitations. 

11/09/10 Gather support for TerreStar Networks beginning stock basis amount. 2.4 390.00 936.00 

11/10/10 Analyze shareholder filings, schedules 13D/form 3/form 4, for Harbinger Capital 

2.8 390.00 1,092.00 

Partners and Marathon Asset Management, L.P. to determine impact on section 382 

analysis. 

11/10/10 Include Harbinger Capital Partners stock transactions into section 382 analysis. 1.2 390.00 468.00 

11/10/10 Gather support for TerreStar Network's beginning stock basis, including reviewing 

stock issuance and mergers to acquire companies that own TerreStar Networks stock. 

2.7 390.00 1,053.00 

11/12/10 Compute TerreStar Networks net unrealized built-in gain/loss as of 09/30/10. 1.9 390.00 741.00 

11/12/10 Compute TerreStar's consolidated net unrealized built-in gain/loss as of 09/30/10. 1.8 390.00 702.00 

11/16/10 Update TerreStar Corporation and TerreStar Networks net unrealized built-in gain 

calculation to account for foreign subsidiaries. 

11/18/10 Prepare section 382 limit calculation for TerreStar Corporation assuming ownership 

change date occurred. 

11/19/10 Research ownership of Harbinger Capital Partners master fund and special situation 

funds to determine impact on section 382 ownership shift. 

11/23/10 Add Harbinger Capital Partners sale transactions identified in recent filings to 

TerreStar Corporations section 382 ownership shift computation. 

2.8 390.00 1,092.00 

2.9 390.00 1,131.00 

2.1 390.00 819.00 

1.1 390.00 429.00 

11

11/24/10 Write memo detailing section 382 application to TerreStar Corporation of non-stock as 2.9 390.00 1,131.00 

stock. 

11/24/10 Write memo discussing fluctuation in value and applicability of internal revenue 

2.8 390.00 1,092.00 

service notice 2010-50 on TerreStar Corporation. 

11/24/10 Write memo discussing value utilized for purposes of TerreStar Corporation section 2.4 390.00 936.00 

382 analysis. 

11/29/10 Review series B documents provided by Blackstone. 2.6 390.00 1,014.00 

11/29/10 Write memo discussing TerreStar's five-percent shareholders for section 382 purposes. 2.2 390.00 858.00 

12/02/10 Research Harbinger Capital Partners LLC for publicly available ownership 

information. 

12/06/10 Discuss with S. Tarrant, J. Damen, and M. Schneider section 382 technical issues 

related to higher tier inquiries and section 382 testing at TerreStar Network's level. 

1.8 390.00 702.00 

0.7 390.00 273.00 

01/06/11 Update TerreStar section 382 ownership shift calculation for recent five-percent 

1.1 390.00 429.00 

shareholder filings. 

01/06/11 Review 13G filings and complete related tax workpapers. 1.3 390.00 507.00 

01/07/11 Update TerreStar section 382 ownership shift calculation for recent five-percent 

shareholder filings, including adding section 382 information and re-checking analysis. 

1.1 390.00 429.00 

01/10/11 Update net unrealized built-in gain calculation. 0.5 390.00 195.00 

01/10/11 Update TerreStar section 382 shift analysis for recent shareholder activity identified in 2.3 390.00 897.00 

public filings. 

01/18/11 Review form 15-12G filed by TerreStar. 1.4 390.00 546.00 

01/19/11 Compute post-bankruptcy section 382 ownership shift percentage assuming stock is 2.7 390.00 1,053.00 

owned by preferred shareholders. 

01/21/11 Update TerreStar section 382 model for recent Harbinger filings. 2.3 390.00 897.00 

01/21/11 Discuss with J. Damen and S. Tarrant Harbinger 13D filing reporting sale of preferred 0.4 390.00 156.00 


Total: Padilla, Dana Agnes 59.5 hours $ 23,205.00 

Time Detail for Ramirez, Honesto Vitug 

01/12/11 Conduct tax research regarding revenue procedure 2004-34 and deferred revenue 

recognition. 

01/13/11 Prepare memo regarding 2010 tax provision treatment of deferred revenue and 

application of revenue procedure 2004-34. 

0.6 515.00 $ 309.00 

2.6 515.00 1,339.00 

01/14/11 Review state tax summary by jurisdiction worksheet for 2010 income tax provision. 0.8 515.00 412.00 

Total: Ramirez, Honesto Vitug 4.0 hours $ 2,060.00 

Time Detail for Reiff, Christopher 

10/22/10 Participate in portion of discussion with S. Tarrant, R. Davis, and E. Kelly section 382 

analysis, basis of TerreStar and TerreStar Networks, and cancellation of debt. 

0.5 590.00 $ 295.00 

10/27/10 Discuss with R. Davis, S. Harrison and M. Boyle potential need for stock basis study 0.4 590.00 236.00 

as part of attribute reduction modeling exercise. 

10/27/10 Discuss with M. Laskovics tax basis work plan. 0.6 590.00 354.00 

11/01/10 Review stock basis computation including review of net operating losses and impact 2.8 590.00 1,652.00 

on stock basis. 

11/01/10 Review stock basis computation including changes to capital accounts. 1.5 590.00 885.00 

11/01/10 Review stock basis computation including reconciling investment adjustments to tax 2.7 590.00 1,593.00 

returns. 

11/05/10 Develop stock basis and worthless stock deduction workplan. 0.4 590.00 236.00 

11/05/10 Discuss with D. Padilla, S. Tarrant, and P. Welsh work plan and work to be performed 1.1 590.00 649.00 

for stock basis and worthless stock projects. 

11/11/10 Review documents for calculation of TerreStar Networks beginning basis. 1.2 590.00 708.00 

12

11/18/10 Discuss with R. Davis, E. Kelly, S. Tarrant, S. Harrison, G. Anderson, C. Reiff section 



0.6 590.00 354.00 

11/23/10 Review capital contributions regarding stock basis calculations. 1.4 590.00 826.00 

11/23/10 Review TerreStar Networks beginning stock basis. 1.0 590.00 590.00 

11/24/10 Review stock basis report. 0.5 590.00 295.00 

11/24/10 Review TerreStar Networks basis calculation. 2.4 590.00 1,416.00 

11/24/10 Review intercompany accounts. 0.5 590.00 295.00 

12/01/10 Discuss with R. Davis TerreStar Networks basis. 0.6 590.00 354.00 

12/16/10 Prepare stock basis analysis. 1.2 590.00 708.00 

Total: Reiff, Christopher 19.4 hours $ 11,446.00 

Time Detail for Sagredo, Claudia Wendy 

01/13/11 Prepare comparison of states that had taxes due last year versus states we expect to pay 

taxes this year. 

Time Detail for Schneider, Mark Alan 

10/29/10 Participate in portion of discussion with G. Anderson, S. Harrison, S. Tarrant, E. 

Kelly, M. Boyle, R. Davis, and J. Damen regarding TerreStar tax structuring issues and 

concerns to preserve/utilize capital loss carryforward. 

1.1 390.00 $ 429.00 

Total: Sagredo, Claudia Wendy 1.1 hours $ 429.00 

0.8 730.00 $ 584.00 

10/29/10 Follow up on discussion with S. Harrison by performing regulatory analysis. 0.7 730.00 511.00 





0.7 730.00 511.00 



0.7 730.00 511.00 



11/01/10 Research applicable high yield discount obligation treatment. 1.5 730.00 1,095.00 




11/08/10 Research attribute reduction with respect to start-up cost. 1.0 730.00 730.00 

01/04/11 Prepare for meeting by reviewing company structure and tax position. 1.5 730.00 1,095.00 


and E. Kelly, G. Anderson, and S. Tarrant tax structuring and net operating loss 


01/18/11 Discuss with S. Tarrant section 382 and section 108 issues. 1.0 730.00 730.00 

01/19/11 Discuss with S. Tarrant, S. Harrison, J. Damen TerreStar section 382 and cancellation 1.3 730.00 949.00 

of debt issues. 

Total: Schneider, Mark Alan 12.5 hours $ 9,125.00 

Time Detail for Stokes, Nicholas Michael 

10/20/10 Prepare third quarter 2010 tax provision book to tax adjustments. 1.1 390.00 $ 429.00 

10/20/10 Check calculations of book to tax adjustments and reconcile amounts to trial balance. 2.3 390.00 897.00 

10/20/10 Analyze updated trial balance for changes to book to tax adjustments. 0.6 390.00 234.00 

10/21/10 Review FIN 48 positions. 2.7 390.00 1,053.00 

10/21/10 Review return to provision amounts. 2.6 390.00 1,014.00 

10/21/10 Update FIN 48 matrix. 0.7 390.00 273.00 

10/22/10 Reconcile tax amounts to trial balance. 1.2 390.00 468.00 

10/22/10 Recalculate rate reconciliation. 1.1 390.00 429.00 

10/22/10 Update tax process summary memo. 1.7 390.00 663.00 

13

11/12/10 Review tax basis balance sheet valuation through 09/30/10. 2.7 390.00 1,053.00 

11/22/10 Prepare TerreStar Networks applicable high-yield discount obligation book to tax 

2.7 390.00 1,053.00 

difference. 

11/22/10 Prepare TerreStar Networks section 195 start-up costs book to tax differences 2.7 390.00 1,053.00 

11/22/10 Prepare TerreStar Networks other book to tax differences, including accruals and 

2.6 390.00 1,014.00 

prepaids. 

11/22/10 Discuss with T. Kelly process to complete 09/30/10 tax basis balance sheet. 2.4 390.00 936.00 

11/22/10 Prepare TerreStar Canada's book to tax differences, including depreciation. 2.6 390.00 1,014.00 

11/22/10 Review book to tax difference workpapers. 2.5 390.00 975.00 

11/23/10 Update book balances for tax basis balance sheet through 09/30/10, including 

2.7 390.00 1,053.00 

classifying book balance sheet according to schedule L breakout and ensuring 

TerreStar Networks retained earnings reconciled. 

11/23/10 Prepare TerreStar Networks tax basis balance sheet supporting workpapers, including 2.6 390.00 1,014.00 

quoting book to tax calculations 

11/23/10 Include book to tax calculations in TerreStar Networks tax basis balance sheet 

2.5 390.00 975.00 

supporting workpapers. 

11/23/10 Update rollforward schedules related to tax basis of deferred inventory. 2.4 390.00 936.00 

11/23/10 Recalculate deferred inventory. 1.9 390.00 741.00 

12/14/10 Calculate 09/30/10 book to tax differences for Terrestar Networks, including 

2.6 390.00 1,014.00 

depreciation differences. 

12/15/10 Calculate book to tax differences for Terrestar Networks entities, including differences 2.7 390.00 1,053.00 

related to orbital incentive payments. 

12/21/10 Update Terrestar Networks book to tax income calculations, including accrual timing 1.9 390.00 741.00 

differences. 

12/22/10 Update Terrestar Networks book to tax income calculations, including fixed asset 

1.9 390.00 741.00 

adjustments and amortizable start up cost differences. 

12/28/10 Prepare Terrestar Networks book to tax income calculations for 09/30/10, including 2.7 390.00 1,053.00 

deductible research and development costs. 

01/04/11 Create workpaper documentation for tax basis balance sheet for TerreStar Networks. 2.5 390.00 975.00 

01/05/11 Review TerreStar Networks satellite placed in service depreciation. 1.1 390.00 429.00 

01/06/11 Review TerreStar Networks book to tax difference calculations. 1.9 390.00 741.00 

01/07/11 Analyze TerreStar Networks satellite depreciation. 1.8 390.00 702.00 

01/08/11 Review TerreStar Networks indefeasible right of use calculation. 1.8 390.00 702.00 

01/11/11 Review 09/30/10 trial balance, including preparing book tax adjustments. 2.7 390.00 1,053.00 

Total: Stokes, Nicholas Michael 67.9 hours $ 26,481.00 

Time Detail for Sullivan, Brian Joseph 

11/05/10 Discuss with S. Tarrant and S. Harrison emergence and proposed transaction issues. 0.5 730.00 $ 365.00 

11/16/10 Review state filings and apportionment data. 0.5 730.00 365.00 

Total: Sullivan, Brian Joseph 1.0 hours $ 730.00 

Time Detail for Tarrant, Stephen A 

10/22/10 Participate in portion of discussion with C. Reiff, R. Davis, and E. Kelly section 382 

analysis, basis of TerreStar and TerreStar Networks, and cancellation of debt. 

10/26/10 Discuss with C. Brown, W. Hirzalla, S. Zelin of Blackstone, G. Anderson, M. Boyle, 

S. Harrison, and E. Kelly tax attributes (net operating losses and capital gains 



10/27/10 Discuss with C. Brown, W. Hirzalla, S, Zelin of Blackstone, G. Anderson, and E. 

Kelly net operating losses and capital losses, including which entities have them and 

how best to structure reorganization to maximize their utilization. 

10/28/10 Discuss with G. Anderson, S. Harrison, and E. Kelly alternative methods to utilize 


0.9 730.00 $ 657.00 

0.9 730.00 657.00 

0.7 730.00 511.00 

0.6 730.00 438.00 

14

10/29/10 Discuss with M. Schneider, G. Anderson, E. Kelly, S. Harrison, M. Boyle, R. Davis, 1.1 730.00 803.00 

and J. Damen TerreStar tax structuring issues and concerns to preserve/utilize capital 

loss carryforward. 





0.7 730.00 511.00 



0.7 730.00 511.00 





11/05/10 Read and review work plans for stock basis, section 382, cancellation of debt, and 0.2 730.00 146.00 

worthless stock work streams. 

11/05/10 Discuss with B. Sullivan and S. Harrison state income tax issues associated with 

0.5 730.00 365.00 

TerreStar bankruptcy, including state section 382 analysis and state income tax impacts 

of cancellation of debt income. 

11/09/10 Discuss with G. Anderson and C. Reiff stock basis computations and worthless stock 0.7 730.00 511.00 

deduction. 

11/09/10 Discuss with D. Padilla, C. Reiff, and P. Welsh work plan for stock basis and worthless 1.1 730.00 803.00 

stock projects. 

11/11/10 Review section 382 computation. 0.4 730.00 292.00 

11/11/10 Read Wall Street Journal article on potential changes to Harbinger fund ownership, 0.2 730.00 146.00 

including considering potential impact on section 382 computation. 

11/16/10 Review section 382 calculations. 0.8 730.00 584.00 

11/18/10 Review section 382 ownership shift calculation. 2.1 730.00 1,533.00 




11/30/10 Discuss with W. Hirzalla and C. Brown of Blackstone andG. Anderson tax issues 

1.0 730.00 730.00 

related to net operating losses and section 382. 


12/06/10 Discuss with J. Damen, M. Schneider, and D. Padilla section 382 technical issues 

related to higher tier inquiries and section 382 testing at TerreStar Network's level. 

0.7 730.00 511.00 

12/22/10 Discuss with H. Jacobson of Akin Gump and G. Anderson tax issues regarding 

0.8 730.00 584.00 

TerreStar Networks net operating losses. 


and M. Schneider, G. Anderson, and E. Kelly tax structuring and net operating loss 


01/07/11 Discuss with H. Jacobson of Akin Gump tax issues including section 382, stock basis, 0.6 730.00 438.00 

and asset basis. 

01/07/11 Review net unrealized built-in gain calculations, including researching related 

1.3 730.00 949.00 

application of 1502-91 to a 50-percent owned company. 

01/08/11 Review net unrealized built-in gain calculations and tax basis balance sheet. 2.1 730.00 1,533.00 


01/10/11 Review Terre star Networks net unrealized built-in gain/loss calculation. 1.2 730.00 876.00 

01/10/11 Review ownership shift computation. 1.2 730.00 876.00 

01/10/11 Review consolidated net unrealized built-in gain/loss calculation. 1.0 730.00 730.00 

01/11/11 Discuss with W. Hirzalla of Blackstone, H. Jacobson of Akin Gump, and S. Joffe of 2.3 730.00 1,679.00 

FTI Consulting, and G. Anderson section 382 ownership questions related to TerreStar 

Networks. 

01/12/11 Review consolidated net unrealized built-in gain/loss calculation. 1.1 730.00 803.00 

01/18/11 Review emails regarding section 382 net operating losses. 0.4 730.00 292.00 

15

01/18/11 Discuss with H. Jacobson of Akin Gump tax issues, including updates to section 382 1.2 730.00 876.00 

net operating loss utilization schedule and reconciliation to tax net operating loss 

schedule. 

01/18/11 Discuss with M. Schneider section 382 and section 108 issues. 1.0 730.00 730.00 

01/19/11 Discuss with S. Harrison, M. Schneider, J. Damen TerreStar section 382 and 

1.3 730.00 949.00 


01/19/11 Review ownership shift calculation and ownership limit calculations for TerreStar 

1.6 730.00 1,168.00 

Networks and TerreStar Corporation. 

01/20/11 Discuss with S. Goldring of Weil Gotshal, H. Jacobson of Akin Gump, S. Harrison, G. 1.8 730.00 1,314.00 

Anderson, M. Boyle, and J. Damen net operating loss, section 382, and cancellation of 


01/20/11 Prepare for call with Weil Gotshal and Akin Gump, including reviewing section 382 2.2 730.00 1,606.00 

shift analysis and net unrealized built-in gain calculations. 

01/21/11 Exchange emails with D. Brandon and V. Loiacono regarding Harbinger stock sale. 0.8 730.00 584.00 

01/21/11 Discuss with J. Damen and D. Padilla Harbinger 13D filing reporting sale of preferred 0.4 730.00 292.00 


01/24/11 Review and revise October billing data. 0.3 730.00 219.00 

01/25/11 Discuss with G. Anderson reorganization questions to preserve net operating losses of 0.9 730.00 657.00 

Motient Communications, TerreStar Networks, and Motient Services. 

01/25/11 Discuss with J. Damen and D. Brandon information related to current series B 

0.4 730.00 292.00 

shareholders of TerreStar Corporation to determine if ownership change has occurred 

at TerreStar Networks. 

01/26/11 Exchange emails and discuss with D. Brandon fair value of global stock. 0.4 730.00 292.00 

01/26/11 Review and provide updates for November fee application. 0.7 730.00 511.00 

01/28/11 Review updated November fee application. 0.3 730.00 219.00 

01/29/11 Review and provide updates for December fee application. 1.2 730.00 876.00 

Total: Tarrant, Stephen A 44.7 hours $ 32,631.00 

Time Detail for Virk, Pavanpreet K 

11/15/10 Gather information related 2010 tax provision, including trial balances. 2.0 390.00 $ 780.00 

01/07/11 Prepare 09/30/10 intercompany debt workpaper. 2.3 390.00 877.50 

01/11/11 Update 09/30/10 intercompany debt workpaper. 1.0 390.00 390.00 

Total: Virk, Pavanpreet K 5.3 hours $ 2,047.50 

Time Detail for Welsh Jr , Peter Joseph 

10/27/10 Assist in preparing section 382 study for delivery to J. Damen. 0.5 305.00 $ 152.50 

11/09/10 Discuss with S. Tarrant, C. Reiff, and D. Padilla tax basis workplan. 1.0 305.00 305.00 

11/09/10 Inventory TerreStar 3.5" discs, noting and describing contents. 1.0 305.00 305.00 

11/10/10 Inventory TerreStar and Motient 3.5" and disks and invoice compact disks. 1.0 305.00 305.00 

11/30/10 Research section 165(g)(3) in internal revenue code. 0.7 305.00 213.50 

11/30/10 Populate gross receipts tables for 2005-2009 tax returns for TerreStar Networks. 0.9 305.00 274.50 

12/01/10 Review TerreStar federal income tax returns sent from T. Kelly. 0.8 305.00 244.00 

01/04/11 Create company organization chart and include stock basis and net operating loss 

1.5 305.00 457.50 

amounts. 

01/19/11 Discuss with S. Tarrant balance sheet information. 0.5 305.00 152.50 

01/20/11 Review files for TerreStar preferred B shareholder list. 1.0 305.00 305.00 

Total: Welsh Jr , Peter Joseph 8.9 hours $ 2,714.50 

Time Detail for Yanchisin, Helen S 

11/01/10 Exchange emails with M. Schneider regarding application of applicable high-yield 

discount obligation rules. 

0.7 590.00 $ 413.00 

Total: Yanchisin, Helen S 0.7 hours $ 413.00 

Total: Tax Advisement and Related Services 608.1 hours $ 310,491.50 

16


Time Detail for Anderson, Gregory R 

11/04/10 Discuss with A. Banks, M. Bauer, T. Carrington, J. Dudek, S. Harrison, D. Padilla, C. Reiff, and 1.1B. Schmidt 730.00 time and $ expense 803.00 reporting 

12/06/10 Discuss with general counsel affidavit approval, including reading affidavit. 0.6 730.00 438.00 

12/07/10 Review engagement letter. 2.1 730.00 1,533.00 

12/14/10 Read and comment on retention affadavit. 1.0 730.00 730.00 

12/21/10 Discuss with E. Kelly and S. Tarrant billing and time allocations. 0.7 730.00 511.00 

Total: Anderson, Gregory R 5.5 hours $ 4,015.00 

Time Detail for Banks, Anthony Douglas 

11/04/10 Discuss with G. Anderson, M. Bauer, T. Carrington, J. Dudek, S. Harrison, D. Padilla, 

C. Reiff, and B. Schmidt time and expense reporting guidelines relating to fee 

application preparation. 

Time Detail for Bauer, Maureen Caitlin 

11/04/10 Discuss with G. Anderson, A. Banks, T. Carrington, J. Dudek, S. Harrison, D. Padilla, 



Time Detail for Boyle, Matthew Scott 

10/27/10 Discuss with R. Cortez, S. Harrison, and B. Schmidt chapter 11 administration 

processes and next steps. 

Time Detail for Carrington, Trevor Max 

11/04/10 Discuss with G. Anderson, A. Banks, M. Bauer, J. Dudek, S. Harrison, D. Padilla, C. 

Reiff, and B. Schmidt time and expense reporting guidelines relating to fee application 

preparation. 

Time Detail for Dudek Jr , John W 

11/04/10 Discuss with G. Anderson, A. Banks, M. Bauer, T. Carrington, S. Harrison, D. Padilla, 



Time Detail for Harrison, Stephen C 

10/27/10 Discuss with R. Cortez, B. Schmidt, and M. Boyle chapter 11 administration processes 

and next steps. 

11/04/10 Discuss with G. Anderson, A. Banks, M. Bauer, T. Carrington, J. Dudek, D. Padilla, C. 

Reiff, and B. Schmidt time and expense reporting guidelines relating to fee application 

1.0 305.00 $ 305.00 

Total: Banks, Anthony Douglas 1.0 hours $ 305.00 

1.1 305.00 $ 335.50 

Total: Bauer, Maureen Caitlin 1.1 hours $ 335.50 

0.5 515.00 $ 257.50 

Total: Boyle, Matthew Scott 0.5 hours $ 257.50 

1.1 305.00 $ 335.50 

Total: Carrington, Trevor Max 1.1 hours $ 335.50 

1.1 390.00 $ 429.00 

Total: Dudek Jr , John W 1.1 hours $ 429.00 

0.5 590.00 $ 295.00 

1.1 590.00 649.00 

preparation. 

11/08/10 Review retention application from Akin Gump. 0.6 590.00 354.00 

11/15/10 Discuss retention application with general counsel. 0.6 590.00 354.00 

11/18/10 Review retention application for Deloitte Tax. 1.6 590.00 944.00 

11/18/10 Respond to open questions on conflict check relating to retention application for 

1.3 590.00 767.00 

Deloitte Tax. 

11/30/10 Review updated retention application and provide comments. 0.8 590.00 472.00 

11/30/10 Discuss with E. Kelly and G. Anderson retention application issues. 0.3 590.00 177.00 

11/30/10 Follow-up with C. Stowe regarding retention application issues. 0.3 590.00 177.00 

12/07/10 Discuss with C. Stowe engagement letter. 0.7 590.00 413.00 

17

12/07/10 Update bankruptcy engagement letter for retention purposes. 0.5 590.00 295.00 

12/08/10 Revise TerreStar engagement letter for retention application purposes. 1.0 590.00 590.00 

12/08/10 Discuss with G. Anderson and C. Stowe approval of engagement letter for retention 0.8 590.00 472.00 

purposes. 

12/13/10 Review retention application. 1.2 590.00 708.00 

Total: Harrison, Stephen C 11.3 hours $ 6,667.00 

Time Detail for Kelly, Edward T 

01/24/11 Discuss with C. Reiff, S. Tarrant, D. Padilla, M. Laskovics, and N. Stokes work 

categories and time accounting requirements for preparing fee applications. 

Time Detail for Laskovics, Matthew Stephen 

01/24/11 Discuss with C. Reiff, E. Kelly, D. Padilla, S. Tarrant, and N. Stokes work categories 

and time accounting requirements for preparing fee applications. 

Time Detail for Padilla, Dana Agnes 

11/04/10 Discuss with G. Anderson, A. Banks, M. Bauer, T. Carrington, J. Dudek, S. Harrison, 



01/24/11 Discuss with S. Tarrant, C. Reiff, E. Kelly, M. Laskovics, and N. Stokes work 


Time Detail for Reiff, Christopher 


D. Padilla, and B. Schmidt time and expense reporting guidelines relating to fee 


01/24/11 Discuss with S. Tarrant, E. Kelly, D. Padilla, M. Laskovics, and N. Stokes work 


Time Detail for Schmidt, Beth A 

10/27/10 Discuss with R. Cortez, S. Harrison, and M. Boyle chapter 11 administration processes 

and next steps. 

0.4 590.00 $ 236.00 

Total: Kelly, Edward T 0.4 hours $ 236.00 

0.4 390.00 $ 156.00 

Total: Laskovics, Matthew Stephen 0.4 hours $ 156.00 

1.1 390.00 $ 429.00 

0.4 390.00 156.00 

Total: Padilla, Dana Agnes 1.5 hours $ 585.00 

1.1 590.00 $ 649.00 

0.4 590.00 236.00 

Total: Reiff, Christopher 1.5 hours $ 885.00 

0.5 300.00 $ 150.00 

11/01/10 Confirm billing details for preparation of fee applications. 0.6 305.00 183.00 

11/04/10 Prepare presentation and set up conference call to discuss time and expense reporting 1.6 305.00 488.00 

compliance. 

11/04/10 Follow-up with engagement team regarding time and expense reporting compliance, 0.5 305.00 152.50 

including providing guidelines. 


D. Padilla, and C. Reiff time and expense reporting guidelines relating to fee 


1.1 305.00 335.50 

01/24/11 Solicit feedback for additional detail from engagement team, updating October fee 1.4 300.00 420.00 

application accordingly. 

01/24/11 Review fee data and solicit feedback from engagement team. 2.3 300.00 690.00 

01/24/11 Download and perform initial review of additional fee data for October fee application. 0.8 300.00 240.00 

01/24/11 Discuss with S. Tarrant work categories and time accounting necessary for preparing 0.3 300.00 90.00 

fee applications. 

01/25/11 Update October fee detail based on feedback from engagement team. 1.2 300.00 360.00 

18

01/25/11 Discuss with M. Laskovics work detail relating to October fee application. 0.2 300.00 60.00 

01/27/11 Follow up on fee detail requests to engagement team members. 0.5 300.00 150.00 

01/27/11 Update October fee application per feedback from engagement team. 0.3 300.00 90.00 

Total: Schmidt, Beth A 11.3 hours $ 3,409.00 

Less: Hours erroneously billed at $305/hour in November 2010 3.8 (5.00) 

$ 

(19.00) 

3,390.00 

Time Detail for Tarrant, Stephen A 

12/10/10 Review billing and time reporting. 0.7 730.00 $ 511.00 

12/21/10 Discuss with E. Kelly and G. Anderson billing and time allocations. 0.7 730.00 511.00 

01/24/11 Discuss with C. Reiff, E. Kelly, D. Padilla, M. Laskovics, and N. Stokes work 

0.4 730.00 292.00 


01/24/11 Discuss with B. Schmidt work categories and time accounting necessary for preparing 0.3 730.00 219.00 

fee applications. 

Total: Tarrant, Stephen A 2.1 hours $ 1,533.00 

Total: Chapter 11 Administrative Services and Related Matters 38.8 hours $ 19,129.50 

Total: April 1, 2011 -- April 30, 2011 646.9 hours $ 329,621.00 

19

EXHIBIT B

EXHIBIT B 

FIRST INTERIM CUMULATIVE TIME SUMMARY 

Fee Application Summarizing Fees for the Fee Period October 19, 2010 through January 31, 2011 


Categorized and Sorted Alphabetically by Professional 

Professional Level Hours Rate Fees 



Banks, Anthony Douglas Staff 4.3 305.00 1,311.50 


Boyle, Matthew Scott Manager 26.8 515.00 13,802.00 

Carr, Joseph G Director 0.5 730.00 365.00 

Carrington, Trevor Max Staff 8.8 305.00 2,684.00 

Damen, John Dewey Manager 70.7 515.00 36,410.50 

Davis, Richard Trippe Director 3.4 730.00 2,482.00 

Dudek Jr , John W Senior 97.0 390.00 37,830.00 

Frishman, Scott P Senior Manager 0.7 590.00 413.00 

Gardner, Rebecca Lynn Staff 2.1 285.00 584.25 


He, Lipeng Manager 1.3 515.00 643.75 

Kelly, Edward T Senior Manager 74.2 590.00 43,778.00 

Laskovics, Matthew Stephen Senior 11.5 390.00 4,485.00 

Ota, Mana Kate Senior 1.6 565.00 904.00 

Padilla, Dana Agnes Senior 59.5 390.00 23,205.00 

Ramirez, Honesto Vitug Manager 4.0 515.00 2,060.00 

Reiff, Christopher Senior Manager 19.4 590.00 11,446.00 

Sagredo, Claudia Wendy Staff 1.1 390.00 429.00 

Schneider, Mark Alan Partner/Principal 12.5 730.00 9,125.00 

Stokes, Nicholas Michael Senior 67.9 390.00 26,481.00 

Sullivan, Brian Joseph Director 1.0 730.00 730.00 


Virk, Pavanpreet K Senior 5.3 390.00 2,047.50 

Welsh Jr , Peter Joseph Staff 8.9 305.00 2,714.50 

Yanchisin, Helen S Senior Manager 0.7 590.00 413.00 

608.1 hours $ 310,491.50 



Banks, Anthony Douglas Staff 1.0 305.00 305.00 


Boyle, Matthew Scott Manager 0.5 515.00 257.50 

Carrington, Trevor Max Staff 1.1 305.00 335.50 

Dudek Jr , John W Senior 1.1 390.00 429.00 


Kelly, Edward T Senior Manager 0.4 590.00 236.00 

Laskovics, Matthew Stephen Senior 0.4 390.00 156.00 

Padilla, Dana Agnes Senior 1.5 390.00 585.00 

Reiff, Christopher Senior Manager 1.5 590.00 885.00 

Schmidt, Beth A Staff 11.3 300.00 3,390.00 


38.8 $ 19,129.50 

Total: October 19, 2010 -- January 31, 2011 646.9 hours $ 329,621.00 

1

EXHIBIT C

EXHIBIT C 

FIRST INTERIM CUMULATIVE EXPENSE DETAIL 

Reflecting Expenses for the Period October 19, 2010 through January 31, 2011 


Sorted by Category 

Date Amount Professional Description 

Business Meals 

11/09/10 5.36 Reiff, Chris Breakfast expense while traveling for work relating to TerreStar Networks. 

11/09/10 33.90 Reiff, Chris Dinner expense while traveling for work relating to TerreStar Networks. 

11/09/10 31.17 Tarrant, Steve Dinner expense while traveling for work relating to TerreStar Networks. 

11/09/10 7.98 Reiff, Chris Lunch expense while traveling for work relating to TerreStar Networks. 







01/24/11 1.96 Damen, John Breakfast while traveling for client service, in McLean, Virginia. 


01/25/11 4.64 Damen, John Lunch while traveling for client service, in McLean, Virginia. 


$ 147.26 Sub-total: Business Meals 

Telecommunications 

10/26/10 4.57 Harrison, Steve Conference call to discuss tax attributes (net operating losses and capital 

gains carryovers) and impact of multiple scenarios with bankruptcy and 

restructuring including mergers and spin-offs. 

10/27/10 1.06 Harrison, Steve Conference call to discuss chapter 11 administration processes and next 

steps. 

10/27/10 0.84 Harrison, Steve Conference call to discuss potential need for stock basis study as part of 

attribute reduction modeling exercise. 

10/29/10 7.31 Harrison, Steve Conference call to discuss structuring issues and concerns to 

preserve/utilize capital loss carryforward. 

11/05/10 0.57 Sullivan, Brian Conference call to discuss emergence and proposed transaction issues. 

11/05/10 7.56 Tarrant, Steve Conference call to discuss work plans for stock basis, section 382, 

cancellation of debt, and worthless stock work streams. 

11/19/10 2.20 Harrison, Steve Conference call to discuss update of negotiations on TerreStar bankruptcy 

transaction. 

12/06/11 3.60 Tarrant, Steve Conference call to discuss section 382 technical issues related to higher tier 

inquiries and section 382 testing at TerreStar Network's level. 

$ 27.71 Sub-total: Telecommunications 

Travel - Airfare 

11/08/10 351.54 Reiff, Chris Round trip coach airfare from Boston, Massachusetts to Washington, D.C. 

01/20/11 157.62 Damen, John Round trip coach airfare from Columbus, Ohio to McLean, Virginia. 

$ 509.16 Sub-total: Travel - Airfare 

1

Travel - Auto 

11/09/10 46.00 Reiff, Chris Taxi from Washington, D.C. airport to Deloitte office in McLean, Virginia. 

11/09/10 12.00 Reiff, Chris Taxi from airport in Reston, Virginia to hotel in Falls Church, Virginia. 

11/09/10 19.00 Reiff, Chris Taxi from home to airport in Boston, Massachusetts. 

11/10/10 15.00 Reiff, Chris Taxi from Deloitte office in McLean, Virginia to hotel in Falls Church, 

Virginia. 

11/10/10 3.00 Reiff, Chris Taxi from hotel in Falls Church, Virginia to Deloitte office in McLean, 


11/11/10 45.00 Reiff, Chris Taxi from Deloitte office in McLean, Virginia to Washington, D.C. airport. 

11/11/10 22.00 Reiff, Chris Taxi from airport to home in Boston, Massachusetts. 

11/11/10 3.00 Reiff, Chris Taxi from hotel in Falls Church, Virginia to Deloitte office in McLean, 


01/26/11 11.70 Damen, John Parking while traveling to provide client services. 

01/26/11 40.59 Damen, John Car rental while traveling to provide client services. 

$ 217.29 Sub-total: Travel - Auto 

Travel - Hotel 

11/09/10 175.00 Reiff, Chris Hotel in Falls Church, Virginia, while traveling for work relating to 

TerreStar Networks. 

11/09/10 15.75 Reiff, Chris Hotel tax in Falls Church, Virginia, while traveling for work relating to 


11/10/10 175.00 Reiff, Chris Hotel in Falls Church, Virginia, while traveling for work relating to 


11/10/10 15.75 Reiff, Chris Hotel tax in Falls Church, Virginia, while traveling for work relating to 


01/24/11 74.70 Damen, John Hotel lodging while providing client services, in McLean, Virginia. 

01/24/11 6.72 Damen, John Hotel tax while providing client services, in McLean, Virginia. 

01/25/11 74.70 Damen, John Hotel lodging while providing client services, in McLean, Virginia. 

01/25/11 6.72 Damen, John Hotel tax while providing client services, in McLean, Virginia. 

$ 544.34 Sub-total: Travel - Hotel 

$ 1,445.76 Total expense reimbursement sought for 10/19/10 - 01/31/11 

2

Deloitte Tax LLP 1750 Tysons Blvd. McLean, Virginia 22102-4219 ...

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