Inmarsat Issues Notice of Default to LightSquared
[Via Satellite 07-03-2014] LightSquared missed a quarterly payment from Phase 2 of its cooperation agreement with Inmarsat. Based on a decision made March 31 2014, LightSquared restarted Phase 2 of its Cooperation Agreement, and the first payment was due July 1, 2014 of $4.1 million along with a related payment of $0.5 million. Inmarsat issued a notice of default on July 2, 2014, initiating a 60-calendar day period in which LightSquared must remedy the payment.
Inmarsat reports LightSquared owes the company approximately $9.1 million. Should the 60 days expire, Inmarsat said it is entitled to enforce its rights and remedies under the agreement for payment default. This includes termination of certain LightSquared rights under the Cooperation Agreement and of pre-agreed spectrum arrangements.
Inmarsat’s mobile satellite services and Solutions businesses have not suffered any loss of revenue generation from this announcement.