SC 13D/A 1 d29278sc13dza.txt AMENDMENT TO SCHEDULE 13D UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 SCHEDULE 13D (AMENDMENT NO. 7)* Under the Securities Exchange Act of 1934 Motient Corporation -------------------------------------------------------------------------------- (Name of Issuer) Common Stock, par value $0.01 per share -------------------------------------------------------------------------------- (Title of Class of Securities) 619908304 -------------------------------------------------------------------------------- (CUSIP Number) Patrick H. Daugherty, Esq. Highland Capital Management, L.P. Two Galleria Tower 13455 Noel Road, Suite 1300 Dallas, Texas 75240 (972) 628-4100 -------------------------------------------------------------------------------- (Name, Address and Telephone Number of Persons Authorized to Receive Notices and Communications) October 7, 2005 -------------------------------------------------------------------------------- (Date of Event which Requires Filing of this Statement) If the filing person has previously filed a statement on Schedule 13G to report the acquisition that is the subject of this Schedule 13D, and is filing this schedule because of Sections 240.13d-1(e), (f) or (g), check the following box. [ ] Note: Schedules filed in paper format shall include a signed original and five copies of the schedule, including all exhibits. See Section 240.13d-7(b) for other parties to whom copies are to be sent. *The remainder of this cover page shall be filled out for a reporting person's initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter disclosures provided in a prior cover page. The information required on the remainder of this cover page shall not be deemed to be "filed" for the purpose of Section 18 of the Securities Exchange Act of 1934 ("Act") or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes). CUSIP No. 619908304 Page 2 of 17 -------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSON S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON Prospect Street High Income Portfolio, Inc. 04-3028343 -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [X] (b) [ ] -------------------------------------------------------------------------------- 3 SEC USE ONLY -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS WC -------------------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) [ ] -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION Maryland -------------------------------------------------------------------------------- 7 SOLE VOTING POWER NUMBER OF SHARES 1,155,224 --------------------------------------------------- 8 SHARED VOTING POWER BENEFICIALLY OWNED BY 0 --------------------------------------------------- 9 SOLE DISPOSITIVE POWER EACH REPORTING 1,155,224 --------------------------------------------------- 10 SHARED DISPOSITIVE POWER PERSON WITH 0 -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 1,155,224 -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES [ ] -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 1.7% -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON CO/IV -------------------------------------------------------------------------------- CUSIP No. 619908304 Page 3 of 17 -------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSON S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON Prospect Street Income Shares Inc. 36-2765811 -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [X] (b) [ ] -------------------------------------------------------------------------------- 3 SEC USE ONLY -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS WC -------------------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) [ ] -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION Maryland -------------------------------------------------------------------------------- 7 SOLE VOTING POWER NUMBER OF SHARES 111,940 --------------------------------------------- 8 SHARED VOTING POWER BENEFICIALLY OWNED BY 0 --------------------------------------------- 9 SOLE DISPOSITIVE POWER EACH REPORTING 111,940 --------------------------------------------- 10 SHARED DISPOSITIVE POWER PERSON WITH 0 -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 111,940 -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES [ ] -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 0.2% -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON CO/IV -------------------------------------------------------------------------------- CUSIP No. 619908304 Page 4 of 17 -------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSON S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON Highland Legacy Limited -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [X] (b) [ ] -------------------------------------------------------------------------------- 3 SEC USE ONLY -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS WC -------------------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) [ ] -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION Cayman Islands -------------------------------------------------------------------------------- 7 SOLE VOTING POWER NUMBER OF SHARES 223,880 ---------------------------------------------- 8 SHARED VOTING POWER BENEFICIALLY OWNED BY 0 ---------------------------------------------- 9 SOLE DISPOSITIVE POWER EACH REPORTING 223,880 ---------------------------------------------- 10 SHARED DISPOSITIVE POWER PERSON WITH 0 -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 223,880 -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES [ ] -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 0.3% -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON OO -------------------------------------------------------------------------------- CUSIP No. 619908304 Page 5 of 17 -------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSON S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON Highland Crusader Offshore Partners, L.P. -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [X] (b) [ ] -------------------------------------------------------------------------------- 3 SEC USE ONLY -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS WC -------------------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) [ ] -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION Bermuda -------------------------------------------------------------------------------- 7 SOLE VOTING POWER NUMBER OF SHARES 5,352,497 --------------------------------------------- 8 SHARED VOTING POWER BENEFICIALLY OWNED BY 0 --------------------------------------------- 9 SOLE DISPOSITIVE POWER EACH REPORTING 5,352,497 --------------------------------------------- 10 SHARED DISPOSITIVE POWER PERSON WITH 0 -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 5,352,497 -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES [ ] -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 8.1% -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON PN -------------------------------------------------------------------------------- CUSIP No. 619908304 Page 6 of 17 -------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSON S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON PAMCO Cayman, Limited -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [X] (b) [ ] -------------------------------------------------------------------------------- 3 SEC USE ONLY -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS WC -------------------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) [ ] -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION Cayman Islands -------------------------------------------------------------------------------- 7 SOLE VOTING POWER NUMBER OF SHARES 223,880 -------------------------------------------- 8 SHARED VOTING POWER BENEFICIALLY OWNED BY 0 -------------------------------------------- 9 SOLE DISPOSITIVE POWER EACH REPORTING 223,880 -------------------------------------------- 10 SHARED DISPOSITIVE POWER PERSON WITH 0 -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 223,880 -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES [ ] -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 0.3% -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON OO -------------------------------------------------------------------------------- CUSIP No. 619908304 Page 7 of 17 -------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSON S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON Highland Equity Focus Fund, L.P. 46-0491961 -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [X] (b) [ ] -------------------------------------------------------------------------------- 3 SEC USE ONLY -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS WC -------------------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) [ ] -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION Delaware -------------------------------------------------------------------------------- 7 SOLE VOTING POWER NUMBER OF SHARES 1,518,779 -------------------------------------------------- 8 SHARED VOTING POWER BENEFICIALLY OWNED BY 0 -------------------------------------------------- 9 SOLE DISPOSITIVE POWER EACH REPORTING 1,518,779 -------------------------------------------------- 10 SHARED DISPOSITIVE POWER PERSON WITH 0 -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 1,518,779 -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES [ ] -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 2.3% -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON PN -------------------------------------------------------------------------------- CUSIP No. 619908304 Page 8 of 17 -------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSON S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON Highland Select Equity Fund, L.P. -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [X] (b) [ ] -------------------------------------------------------------------------------- 3 SEC USE ONLY -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS WC -------------------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) [ ] -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION Delaware -------------------------------------------------------------------------------- 7 SOLE VOTING POWER NUMBER OF SHARES 119,283 ------------------------------------------- 8 SHARED VOTING POWER BENEFICIALLY OWNED BY 0 ------------------------------------------- 9 SOLE DISPOSITIVE POWER EACH REPORTING 119,283 ------------------------------------------- 10 SHARED DISPOSITIVE POWER PERSON WITH 0 -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 119,283 -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES [ ] -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 0.2% -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON PN -------------------------------------------------------------------------------- CUSIP No. 619908304 Page 9 of 17 -------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSON S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON Highland Capital Management Services, Inc. -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [X] (b) [ ] -------------------------------------------------------------------------------- 3 SEC USE ONLY -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS WC -------------------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) [ ] -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION Delaware -------------------------------------------------------------------------------- 7 SOLE VOTING POWER NUMBER OF SHARES 182,748 -------------------------------------------- 8 SHARED VOTING POWER BENEFICIALLY OWNED BY 0 -------------------------------------------- 9 SOLE DISPOSITIVE POWER EACH REPORTING 182,748 -------------------------------------------- 10 SHARED DISPOSITIVE POWER PERSON WITH 0 -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 182,748 -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES [ ] -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 0.3% -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON CO -------------------------------------------------------------------------------- CUSIP No. 619908304 Page 10 of 17 -------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSON S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON Highland Capital Management, L.P. 75-2716725 -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [X] (b) [ ] -------------------------------------------------------------------------------- 3 SEC USE ONLY -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS AF/WC -------------------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) [ ] -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION Delaware -------------------------------------------------------------------------------- 7 SOLE VOTING POWER NUMBER OF SHARES 8,822,764 ---------------------------------------------- 8 SHARED VOTING POWER BENEFICIALLY OWNED BY 0 ---------------------------------------------- 9 SOLE DISPOSITIVE POWER EACH REPORTING 8,822,764 ---------------------------------------------- 10 SHARED DISPOSITIVE POWER PERSON WITH 0 -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 8,822,764 -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES [ ] -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 13.3% -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON IA/PN -------------------------------------------------------------------------------- CUSIP No. 619908304 Page 11 of 17 -------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSON S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON Strand Advisors, Inc. 95-4440863 -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [X] (b) [ ] -------------------------------------------------------------------------------- 3 SEC USE ONLY -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS AF -------------------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) [ ] -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION Delaware -------------------------------------------------------------------------------- 7 SOLE VOTING POWER NUMBER OF SHARES 8,822,764 ----------------------------------------------- 8 SHARED VOTING POWER BENEFICIALLY OWNED BY 0 ----------------------------------------------- 9 SOLE DISPOSITIVE POWER EACH REPORTING 8,822,764 ----------------------------------------------- 10 SHARED DISPOSITIVE POWER PERSON WITH 0 -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 8,822,764 -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES [ ] -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 13.3% -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON CO -------------------------------------------------------------------------------- CUSIP No. 619908304 Page 12 of 17 -------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSON S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON James Dondero -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [X] (b) [ ] -------------------------------------------------------------------------------- 3 SEC USE ONLY -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS AF/PF -------------------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) [ ] -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION United States -------------------------------------------------------------------------------- 7 SOLE VOTING POWER NUMBER OF SHARES 9,024,326 ---------------------------------------------- 8 SHARED VOTING POWER BENEFICIALLY OWNED BY 0 ---------------------------------------------- 9 SOLE DISPOSITIVE POWER EACH REPORTING 9,024,326 ---------------------------------------------- 10 SHARED DISPOSITIVE POWER PERSON WITH 0 -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 9,024,326 -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES [ ] -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 13.6% -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON IN -------------------------------------------------------------------------------- Page 13 of 17 This Amendment No. 7 to Schedule 13D amends and supplements the Schedule 13D filed with the Securities and Exchange Commission (the "Commission") on June 10, 2002, as amended by Amendment No. 1 to Schedule 13D filed with the Commission on October 20, 2003, Amendment No. 2 to Schedule 13D filed with the Commission on July 12, 2004, Amendment No. 3 to Schedule 13D filed with the Commission on November 16, 2004, Amendment No. 4 to Schedule 13D filed with the Commission on April 19, 2005, Amendment No. 5 to Schedule 13D filed with the Commission on September 7, 2005 and Amendment No. 6 to Schedule 13D filed with the Commission on September 29, 2005 (as amended, the "Schedule 13D"). Capitalized terms used herein which are not defined herein have the meanings given to such terms in the Schedule 13D. Except as otherwise provided herein, all Items of the Schedule 13D remain unchanged. ITEM 4. PURPOSE OF THE TRANSACTION. Item 4 is hereby supplemented as follows: On October 4, 2005, Mr. James D. Dondero, a member of the Board of Directors of the Company, whose principal business is serving as the President of Highland Capital, sent the attached e-mail to the Board of Directors of the Company and the other members thereof, expressing his concern regarding certain actions taken by the Board at its meeting held on October 3, 2005. A copy of this e-mail is attached hereto as Exhibit 7. On October 6, 2005, representatives of Highland Capital made a presentation to Motient's Executive Committee regarding the proposed transaction recently announced by Motient whereby the ownership of Mobile Satellite Ventures LP ("MSV") and TerreStar Networks Inc. ("TerreStar") would be consolidated within Motient through a series of transactions, including the issuance of additional shares of common stock of Motient in exchange for interests held by limited and general partners in MSV and certain shareholders in TerreStar and a subsequent spin-off of the stock in TerreStar. The representatives of Highland Capital pointed out various valuation issues relating to the transaction and questioned the motivation for this transaction and whether this transaction was fair to all of the stockholders of Motient. These representatives also advised the Executive Committee that The Brattle Group, an economic consulting firm, had been hired to provide a third-party valuation of certain assets subject to the proposed transaction (the "Brattle Report"). In connection with this report and based on The Brattle Group's valuation findings, The Battle Group concluded that the economics of the proposed transaction favored the non-Motient owners of MSV and not the Motient stockholders. A copy of portions of the presentation made by Highland Capital to the Executive Committee is attached hereto as Exhibit 8 and is incorporated herein by reference, and a copy of the Brattle Report is attached hereto as Exhibit 9 and is incorporated herein by reference. On October 7, 2005, a class action lawsuit was filed in the Court of Chancery of the State of Delaware in and for New Castle County to enjoin the proposed exchange offer (the "Exchange Offer") by Motient, pursuant to which Motient is seeking to exchange its Series B Cumulative Convertible Preferred Stock (the "Series B Preferred") for outstanding shares of Series A Cumulative Convertible Preferred Stock of Motient (the "Series A Preferred"). The Exchange Offer was commenced on September 27, 2005. This action was brought against Motient and certain of its officers and directors (collectively, the "Class Action Defendants"), on behalf of certain of the Reporting Persons and all similarly situated holders of the Series A Preferred. The class action alleges, among other things, that the Class Action Defendants: (i) breached their fiduciary duties in connection with the Exchange Offer by structuring the Exchange Offer so that it is coercive, by failing to disclose certain information and by disclosing misleading information related to the Exchange Offer; and (ii) made material misrepresentations and omissions in the disclosures associated with the Exchange Offer which make it impossible for the holders of the Series A Preferred to compare the value of the Series A Preferred to the Series B Preferred. A copy of the class action complaint is attached hereto as Exhibit 10 and is incorporated herein by reference. In response to the foregoing actions, among others, the Reporting Persons are considering various plans or proposals which relate to or could result in the transactions or changes contemplated by Items 4(a) through 4(j) of Schedule 13D. Such plans or proposals could include acquisitions of additional shares in the open market or Page 14 of 17 otherwise and potentially seeking possible changes in the present Board of Directors and management of the Company. In the interim and prior to formulating any definitive plan or proposal, the Reporting Persons may communicate with other stockholders regarding their concerns about the actions taken by the Company and its management. ITEM 7. MATERIAL TO BE FILED AS EXHIBITS. Item 7 is hereby amended and supplemented as follows: Exhibit 7 E-mail from James D. Dondero to the Board of Directors of Motient Corporation, dated October 4, 2005. Exhibit 8 Portions of Presentation made by Highland Capital Management, L.P. to the Executive Committee of Motient Corporation, dated October 6, 2005. Exhibit 9 Letter Report of The Brattle Group, dated October 5, 2005. Exhibit 10 Class Action Complaint, filed in the Court of Chancery of the State of Delaware in and for New Castle County, styled as Highland Crusader Offshore Partners, L.P.; Highland Equity Focus Fund, L.P.; Highland Capital Management, L.P.; and Highland Capital Management Services, Inc., on behalf of themselves and all those similarly situated, vs. Motient Corporation; Steven G. Singer; Gerald S. Kittner; Barry A. Williamson; Raymond L. Steele; C. Gerald Goldsmith; and Jonelle St. John. Page 15 of 17 SIGNATURE After reasonable inquiry and to the best of my knowledge and belief, I certify that the information set forth in this statement is true, complete and correct. Date: October 11, 2005 HIGHLAND CAPITAL MANAGEMENT, L.P. By: Strand Advisors, Inc., its general partner By: /s/ James Dondero --------------------------------- Name: James Dondero Title: President STRAND ADVISORS, INC. By: /s/ James Dondero ---------------------------------------- Name: James Dondero Title: President /s/ James Dondero ------------------------------------------------- JAMES DONDERO PROSPECT STREET HIGH INCOME PORTFOLIO, INC. By: /s/ James Dondero ---------------------------------------- Name: James Dondero Title: President PROSPECT STREET INCOME SHARES INC. By: /s/ James Dondero ---------------------------------------- Name: James Dondero Title: President HIGHLAND LEGACY LIMITED By: Highland Capital Management, L.P., its collateral manager By: Strand Advisors, Inc., its general partner By: /s/ James Dondero --------------------------------- Name: James Dondero Title: President HIGHLAND CRUSADER OFFSHORE PARTNERS, L.P. By: Highland Capital Management, L.P., its general partner By: Strand Advisors, Inc., its general partner By: /s/ James Dondero --------------------------------- Name: James Dondero Title: President Page 16 of 17 PAMCO CAYMAN, LIMITED By: Highland Capital Management, L.P., its collateral manager By: Strand Advisors, Inc., its general partner By: /s/ James Dondero --------------------------------- Name: James Dondero Title: President HIGHLAND EQUITY FOCUS FUND, L.P. By: Highland Capital Management, L.P., its general partner By: Strand Advisors, Inc., its general partner By: /s/ James Dondero --------------------------------- Name: James Dondero Title: President HIGHLAND SELECT EQUITY FUND, L.P. By: Highland Capital Management, L.P., its general partner By: Strand Advisors, Inc., its general partner By: /s/ James Dondero --------------------------------- Name: James Dondero Title: President HIGHLAND CAPITAL MANAGEMENT SERVICES, INC. By: /s/ James Dondero ---------------------------------------- Name: James Dondero Title: President Page 17 of 17 APPENDIX I The name of each director and officer of HCM Services, Strand, Prospect Portfolio and Prospect Shares is set forth below. Unless otherwise indicated, the business address of each person listed below is Two Galleria Tower, 13455 Noel Road, Suite 1300, Dallas, Texas 75240. Each person identified below is a citizen of the United States of America. The present principal occupation or employment of each of the listed persons is set forth below. During the past five years, none of the individuals listed below has been convicted in a criminal proceeding or been a party to a civil proceeding, in either case of the type specified in Items 2(d) or (e) of Schedule 13D.
PRESENT PRINCIPAL OCCUPATION OR EMPLOYMENT NAME AND BUSINESS ADDRESS (IF APPLICABLE) ---------------------------------------------------- ---------------------------------------------------------------- HIGHLAND CAPITAL MANAGEMENT SERVICES, INC. James D. Dondero, Director President Mark K. Okada, Director Executive Vice President Patrick H. Daugherty Secretary Todd A. Travers Assistant Secretary J. Kevin Ciavarra Assistant Secretary David Lancelot Treasurer Chad Schramek Treasurer STRAND ADVISORS, INC. James D. Dondero, Director President Mark K. Okada Executive Vice President R. Joseph Daugherty Vice President Todd A. Travers Secretary J. Kevin Ciavarra Assistant Secretary Chad Schramek Treasurer PROSPECT STREET HIGH INCOME PORTFOLIO, INC. AND PROSPECT STREET INCOME SHARES INC. ---------------------------------------------------------------------------------- James D. Dondero, Director President Mark K. Okada Executive Vice President R. Joseph Daugherty, Director Senior Vice President M. Jason Blackburn Secretary and Treasurer Michael S. Minces Chief Compliance Officer Associate Provost for Graduate Education of the Pennsylvania Timothy K. Hui, Director Biblical University, 48 Willow Green Drive, Churchville, Pennsylvania 18966 Scott F. Kavanaugh, Director Private investments James F. Leary, Director Managing Director of Benefit Capital Southwest, Inc., 2006 Peakwood Drive, Garland, Texas 75044 Bryan A. Ward, Director Senior Manager of Accenture, LLP, 3625 Rosedale, Dallas, Texas 75205