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.
- 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