A deal with creditors gives the would-be wireless operator up to $190M and more than a year to spend it

Dan Jones, Mobile Editor

June 13, 2012

1 Min Read
LightSquared Gets Lifeline 'Til Sept. 2013

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

About the Author(s)

Dan Jones

Mobile Editor

Dan is to hats what Will.I.Am is to ridiculous eyewear. Fedora, trilby, tam-o-shanter -- all have graced the Jones pate during his career as the go-to purveyor of mobile essentials.

But hey, Dan is so much more than 4G maps and state-of-the-art headgear. Before joining the Light Reading team in 2002 he was an award-winning cult hit on Broadway (with four 'Toni' awards, two 'Emma' gongs and a 'Brian' to his name) with his one-man show, "Dan Sings the Show Tunes."

His perfectly crafted blogs, falling under the "Jonestown" banner, have been compared to the works of Chekhov. But only by Dan.

He lives in Brooklyn with cats.

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