LightSquared looks to extend cash use to operate debtors until Feb. 28

By Caroline Salls

Pittsburgh, Dec. 9 - LightSquared Inc. requested an extension of its use of pre-bankruptcy lenders' cash collateral, according to a Friday filing with the U.S. Bankruptcy Court for the Southern District of New York.

Specifically, the company said the extension would permit the LP lenders' obligors to continue to use the cash collateral to operate debtors LightSquared LP, ATC Technologies, LLC, LightSquared Corp., LightSquared Inc. of Virginia, LightSquared Subsidiary LLC, LightSquared Finance Co., LightSquared Network LLC, Lightsquared Bermuda Ltd., SkyTerra Holdings (Canada) Inc. and SkyTerra (Canada) Inc. until Feb. 28.

LightSquared said the court decided that a brief delay of the auction of LightSquared's assets and its plan confirmation hearing was appropriate, rescheduling the auction to Dec. 11 and the confirmation hearing to Jan. 9.

The new confirmation hearing date extends beyond the current Dec. 31 expiration of the cash collateral use.

A hearing is scheduled for Dec. 20.

LightSquared is a Reston, Va.-based wholesale-only 4G-LTE network integrated with satellite coverage. The company filed for bankruptcy on May 14, 2012 under Chapter 11 case number 12-12080.

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