LightSquared: hearing for debtor's DIP financing adjourned to Feb. 4

By Lisa Kerner

Charlotte, N.C., Jan. 31 - LightSquared Inc.'s hearing on approval for debtor-in-possession financing for LightSquared LP was adjourned to Feb. 4, from Friday, according to an attorney familiar with the case.

As previously reported, LightSquared is seeking approval debtor LightSquared LP to obtain $33 million in DIP financing.

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.

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.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.