LightSquared seeks OK for LP debtor to obtain $33 million DIP loan

By Caroline Salls

Pittsburgh, Jan. 21 - LightSquared Inc. requested court approval for debtor LightSquared LP to obtain $33 million in debtor-in-possession financing, according to a Saturday filing with the U.S. Bankruptcy Court for the Southern District of New York.

Given that the plan confirmation process in the LightSquared Chapter 11 cases could extend into at least February, the company said additional funding is required to carry it through to the entry of a confirmation order.

Under the proposed financing, the LP debtors' operations would be funded through the earlier of April 15 and either the occurrence of a funding date specified under a plan proposed by an informal LP lender secured group if that plan is confirmed or 15 days after the confirmation date if the plan proposed by LightSquared is confirmed.

The DIP lenders will be Capital Research and Management Co., Cyrus Capital Partners, LP, Fir Tree Partners and Intermarket Corp.

Interest will be 15%, payable in kind.

A hearing is scheduled for Jan. 31.

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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