LightSquared's troubles continue, company defaults on $56M payment to Inmarsat
It's been a while since LightSquared had some good news to boast about, and it doesn't look like that situation's about to change anytime soon. The latest stumble for the company stems from its 2007 agreement with UK-based satellite operator and spectrum owner Inmarsat, which was due a $56.25 million payment from LightSquared that it has now defaulted on. For its part, LightSquared is laying some of the blame on Inmarsat, saying that it has "raised several matters that require resolution" before the first phase of the agreement comes to a close, and that "the terms of the agreement allow for additional time to resolve pending questions before phase one is complete and the final payment is due." This comes as the company faces a brick wall in the form of the FCC, which it has been struggling to get approval from and has recently been criticizing in increasingly blunt terms. Its full statement on the Inmarsat matter can be found after the break.
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LightSquared Statement Regarding Inmarsat Notice
RESTON, Va., Feb. 20, 2012 /PRNewswire/ -- LightSquared has received a notice of completion from Inmarsat relating to the first phase of the companies' 2007 multi-phase agreement to reallocate spectrum resources. As part of the first phase, Inmarsat is required to fulfill certain obligations important to the deployment of LightSquared's 4G-LTE integrated terrestrial and satellite network and protection of their respective customers.
LightSquared has raised several matters that require resolution before the first phase comes to a close. The terms of the agreement allow for additional time to resolve pending questions before phase one is complete and the final payment is due.
LightSquared is committed to fulfilling its business plan to bring world-class wireless broadband connectivity to millions of Americans and believes that Inmarsat will remain an important partner in the company's future endeavors.
About LightSquared
LightSquared's mission is to revolutionize the U.S. wireless industry. With the creation of the first-ever, wholesale-only nationwide 4G-LTE network integrated with satellite coverage, LightSquared offers people the speed, value and reliability of universal connectivity, wherever they are in the United States. As a wholesale-only operator, LightSquared will deploy an open 4G wireless broadband network to be used by existing and new service providers to sell their own devices, applications and services – at a competitive cost and without retail competition from LightSquared. The deployment and operation of LightSquared's network represent more than $14 billion of private investment over the next eight years. For more information about LightSquared, please go to www.LightSquared.com, www.facebook.com/LightSquared and www.twitter.com/LightSquared.
Forward-Looking Statement
This release contains forward-looking statements and information regarding LightSquared and its business. Such statements are based on the current expectations and certain assumptions of LightSquared's management and are, therefore, subject to certain risks and uncertainties. The forward-looking statements expressed herein relate only to information as of the date of this release. LightSquared has no obligation to update these forward-looking statements to reflect events or circumstances after the date of this release, nor is there any assurance that the plans or strategies discussed in this release will not change.
SOURCE LightSquared
