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.

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— Dan Jones, Site Editor, Light Reading Mobile

joanengebretson 12/5/2012 | 5:30:05 PM
re: LightSquared Gets Lifeline 'Til Sept. 2013

The big question is where LightSquared goes from here. Try to persuade the government to do a spectrum swap? Sell spectrum to DISH? Or something else?

joset01 12/5/2012 | 5:30:04 PM
re: LightSquared Gets Lifeline 'Til Sept. 2013

Spectrum swap? I don't see how they'd pull it off.

joanengebretson 12/5/2012 | 5:30:03 PM
re: LightSquared Gets Lifeline 'Til Sept. 2013

I agree. I doubt very much the government would agree to that, especially since there's likely to be more than one agency involved (FCC + spectrum holder). But LightSquared management is buying time for something. Maybe just trying to find a buyer.

joset01 12/5/2012 | 5:30:02 PM
re: LightSquared Gets Lifeline 'Til Sept. 2013 Hoping for a fresh FCC with the next election.
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