EchoStar Communications Corp, who last week initiated legal action against would-be partner News Corp Ltd (CI No 3,158) to fight for a $200m loan, says it has expanded the scope of the suit. EchoStar now seeks to require News Corp to honor its obligations under the agreement signed in February in which News Corp arranged to buy 50% of EchoStar for $1bn. In addition, EchoStar seeks damages resulting from the breached agreement including lost profits, which could exceed $5bn. The situation has left EchoStar with insufficient capital to fulfill its business plan without material changes. The Englewood, Colorado company says it is currently in talks with investment banks to find a solution to its financial problems and is also exploring the possibility of identifying another possible strategic partner. It will seek recovery of any new financing expenses from News Corp in addition to funds involved in the original agreement.