LightSquared granted seventh DIP amendment for additional $10 million

By Kali Hays

New York, April 15 - LightSquared Inc. obtained court approval of a seventh amendment to its debtor-in-possession financing that provides an additional $10 million of financing for a total of $77.63 million, according to a Tuesday order with the U.S. Bankruptcy Court for the Southern District of New York.

The approved amendment also extends the maturity date of the DIP facility to June 15.

As previously reported, the new $77.63 million loan total includes the additional $10 million loan, a previous additional loan, an additional loan commitment fee, a roll-up loan, the initial loan, an up-front fee, payment-in-kind interest and all amendment fees up to April 7.

Under the amendment agreement, the additional $10 million of financing can only be used for general corporate purposes, and the company is required to pay a 2.5% fee for the added loan.

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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