Feeds

LightSquared files for bankruptcy

End of the line for 4G wannabe? Wanna bet?

Seven Steps to Software Security

Just hours before the expiration of a deal designed to keep it from defaulting on its debt, 4G wannabe LightSquared announced on Monday that it was filing for Chapter 11 bankruptcy protection.

"The filing was necessary to preserve the value of our business and to ensure continued operations," said the company's interim co-COO and CFO Marc Montagner in a statement. "The voluntary Chapter 11 filing 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.”

According to papers filed with the US bankruptcy court in in New York City, Bloomberg reports, LightSquared claims assets of $4.48 billion and debt of $2.29 billion as of the end of this February.

The Wall Street Journal notes that the bankruptcy petition was filed in advance of a 5pm Monday deadline of a debt-forbearance agreement. At the top of LightSquared's creditor list sits Boeing Satellite Systems, the bankruptcy petition notes, with a disputed claim of $7.5 million. Close behind is Alcatel-Lucent, with the disputed claim of $7.3 million.

Other debt includes a $322.3m loan and $1.7bn outstanding under a credit facility with UBS AG and Wilmington Trust FSB as agents, according to Bloomberg.

The up-and-down LightSquared saga, based on turning unused satellite-phone spectrum into a US 4G bonanza, has been heavily weighted to the downside recently, especially since the FCC ruled this February that it was withdrawing a waiver under which the company was planning to build its network, citing concerns that the LightSquared network would interfere with the Global Positioning System.

The lobbying for and against FCC approval of LightSquared's plans has been hot and heavy, and there's no reason to believe that Monday's bankruptcy filing will be the end of the story.

That said, observers can't be faulted for hearing a bit of whistling in the dark when Montagner comments about preserving "the value of our business" and securing "breathing room to continue working through the regulatory process." ®

The smart choice: opportunity from uncertainty

More from The Register

next story
Auntie remains MYSTIFIED by that weekend BBC iPlayer and website outage
Still doing 'forensics' on the caching layer – Beeb digi wonk
Apple orders huge MOUNTAIN of 80 MILLION 'Air' iPhone 6s
Bigger, harder trouser bulges foretold for fanbois
GoTenna: How does this 'magic' work?
An ideal product if you believe the Earth is flat
Telstra to KILL 2G network by end of 2016
GSM now stands for Grave-Seeking-Mobile network
Seeking LTE expert to insert small cells into BT customers' places
Is this the first step to a FON-a-like 4G network?
Yorkshire cops fail to grasp principle behind BT Fon Wi-Fi network
'Prevent people that are passing by to hook up to your network', pleads plod
BlackBerry: Toss the server, mate... BES is in the CLOUD now
BlackBerry Enterprise Services takes aim at SMEs - but there's a catch
prev story

Whitepapers

Top three mobile application threats
Prevent sensitive data leakage over insecure channels or stolen mobile devices.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.