LightSquared Gets Additional Rope
LightSquared has reportedly reached a $ 190 million agreement with its creditors that will let it continue operations until September 2013, Bloomberg reports. At stake was the company’s ability to draw upon $ 190 million of encumbered cash at LightSquared LP, the main operating subsidiary of the company.
LightSquared filed for Chapter 11 bankruptcy in May after LightSquared’s founder, Harbinger Capital Partners CEO Philip Falcone, failed to strike a deal with lenders — holding more than $ 1 billion in company debt — to keep the company afloat.
The deal will allow the company to use as much as $ 190 million in collateral until the fall of next year while repaying creditors $ 6.25 million a month.
“A spectrum swap is the most resourceful and efficient way to quickly expand broadband access nationwide,” the letter said. The letter was sent by Reps. Jim Moran (D-Va.), Maurice Hinchey (D-N.Y.), Steve Rothman (D-N.J.) Rodney Alexander (R-La.) and Ander Crenshaw (R-Fla.), all members of the House Appropriations Committee.
Meanwhile, some observers estimate Dish will have to spend $ 13 billion to build a network from scratch. DISH’s co-founder, Charlie Ergen, told the WSJ Journal it had two potential partners in Sprint and T-Mobile USA.
DISH first must secure regulatory approval from the FCC to enable it to take advantage of 40 MHz of spectrum in the 2 GHz band that it bought for $ 3 billion from two bankrupt satellite companies, ICO and TerreStar. Sprint planned to team with LightSquared before LightSquared’s plans to deploy their network unraveled in the face of regulatory opposition and GPS interference concerns.
See Dailywireless: Lightsquared Files for Bankrupcy, FCC Judgement on Lightsquared: Fail, Dish to FCC: More Time for MSS Terrestrial Buildout , Sprint Gives Lightsquared 6 Weeks, Dish Clarifies LTE-Advanced Plan, Dish LTE-Advanced Called “Ollo”, Charlie Ergen’s Spectacular Triple Play
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- Lightsquared: Breaking Bad
- Lightsquared Vs the FAA
- Sprint Dumping Lightsquared?
- Sprint Dumps Lightsquared
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