Latest News
[Satellite TODAY 05-16-12] Wholesale 4G LTE network operator LightSquared has filed for bankruptcy to resolve signal interference concerns from U.S. regulators and the U.S. Federal Communications Commission (FCC) and to settle its rapidly growing debt, according to a Chapter 11 document filed May 15 with the U.S. Bankruptcy Court in Manhattan
LightSquared listed assets of $4.48 billion and debt of $2.29 billion as of Feb. 29. In that same month, the FCC said it would withdraw preliminary approval for the company’s network after government tests found that the signals would interfere with global-positioning systems. LightSquared said that reaching agreements with the FCC and other U.S. regulatory agencies could take as long as two years.
The company had been in negotiations with its creditors, who had requested that the company’s financier and Harbinger Capital Partners Director Philip Falcone step aside. Falcone and the current management team will remain with the company, according to LightSquared Spokesman Terry Neal.
“Chapter 11 protection is intended to give LightSquared sufficient breathing room to continue working through the regulatory process that will allow us to build our 4G wireless network,” LightSquared CFO Marc Montagner said in a statement.
Get the latest Via Satellite news!
Subscribe Now