Inmarsat Issues LightSquared a Notice of Default for $17.5 Million
[Via Satellite 10-06-2014] Inmarsat reports LightSquared has not submitted a quarterly Phase 2 payment due on Sept. 30. The company owed $12.5 million along with a related payment of $5 million, which was never received.
Based on the terms set in the cooperation agreement, Inmarsat issued a notice of default on Oct. 1, 2014. LightSquared has 60 calendar days from the notice to pay the amount owed before Inmarsat is allowed to terminate select rights from the cooperation agreement, including pre-agreed spectrum arrangements.
In July 2014 Inmarsat issued a notice of default for $9.1 million, which was received in August. The company said the missed payments by LightSquared have not impacted its group business.