A deal with creditors gives the would-be wireless operator up to $190M and more than a year to spend it
LightSquared has reportedly reached a $190 million agreement with its creditors that will let it continue operations until September 2013, Bloomberg reports.
LightSquared filed for Chapter 11 bankruptcy in May after LightSquared's founder, Harbinger Capital Partners LP 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.
Why this matters
LightSquared lives to fight another day. The company said in court papers that without an agreement from creditors, it would have to cease operations.
For more
LightSquared Files for Chapter 11
Falcone Could Step Down From LightSquared
LightSquared Director Considers Bankruptcy
Sprint Scuttles LightSquared Deal
LightSquared CEO Leaves
— Dan Jones, Site Editor, Light Reading Mobile
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