technology failures has emerged phoenix-like from bankruptcy after it was given a $1.2 billion cash injection by investors.

ICO Global Communications was set up in 1995 to provide global mobile personal communications services by satellite.

ICO was listed on the NASDAQ stock exchange in July 1998 with high hopes of taking the satellite phone world by storm.

But the company underestimated the rapid expansion of land-based wireless phone systems and the stock was suspended from trading when the company filed for bankruptcy on August 27, 1999.

Only last month the bankruptcy case was due in the Supreme Court, but a rescue package by investors has saved its skin.

Now a new company, called New ICO, has emerged from the ashes, and was officially launched on Friday.

The new business partners plan for the old ICO to be liquidated under Bermuda law, and the common shares of the old ICO will eventually be cancelled.

While shares of ICO may remain outstanding until the liquidation is complete, the existing common shares of ICO no longer have any value other than the value of the shares and warrants being received under the reorganisation plans.

The company has not yet released how much this will be worth, but a bankruptcy settlement in a Delaware court this month said the holders of the existing common shares of old ICO will receive shares of common stock comprising approximately 1 percent of the common equity capitalisation of New ICO Global Communications (Holdings) Limited, the reorganised company, and warrants to purchase such common stock.

In a statement, New ICO, said it has successfully emerged from Chapter 11 bankruptcy protection following investment led by telecommunications pioneer Craig McCaw and a group of US and international investors.

"I congratulate New ICO, its employees and its partners around the world on all the hard work required to facilitate the company's transformation,'' said Mr. McCaw.

"We appreciate having the opportunity to learn from the pioneering efforts of others in reconfiguring New ICO for the market.'' New ICO officially emerged from bankruptcy protection on Friday.

ICO-Teledesic Global Limited, a new holding company that controls the satellite assets of Mr. McCaw's private investment company Eagle River Investments LLC, intends within this week to propose to New ICO a merger of the two companies.

Under New ICO's just-completed reorganisation, ICO-Teledesic Global is the controlling shareholder in the London-based New ICO.

This proposal is subject to approval by the New ICO board and shareholders and regulatory authorities.

According to Mr. McCaw, New ICO will build on the mobile voice capabilities of its existing system design, and will also offer a family of services that are the satellite equivalent of third-generation (3G) wireless services, including wireless Internet and other packet-data services.