Judge sends DBSD-Dish sale to creditor vote

NEW YORK, May 23 (Reuters) - A bankruptcy judge gave the go-ahead on Monday for creditors of DBSD North America to vote on the bankrupt company's proposed $1.4 billion sale to Dish Network Corp, an attorney for DBSD said.

Judge Robert E. Gerber approved the sale plan at U.S. Bankruptcy Court in Manhattan on Monday, with a confirmation hearing set for June 30, Ryan Bennett of law firm Kirkland & Ellis LLP said.

The sale would pay back creditors and give equity holders a recovery of $280 million. If approved, the sale would add to a growing satellite empire held by billionaire Charlie Ergen.

Ergen, the owner of Dish and set-top box maker EchoStar Corp, already has bought bankrupt movie rental chain Blockbuster Inc and is a major creditor of bankrupt telecommunications firm TerreStar Networks Inc.

DBSD, a satellite and land-based communications company, went bankrupt in May 2009 on the heels of a liquidity drought brought on by the financial crisis. The company listed debts of $813 million.

DBSD creditors have until June 17 to file objections and must vote on the sale plan by June 22.

Bennett said the company is confident the sale will go through without much controversy. He said DBSD is not aware of any pending objections to the deal.

An attorney for the creditors committee did not immediately return a call seeking comment.

(Reporting by Nick Brown. Editing by Robert MacMillan)

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