LightSquared fails to make $9.1 million cooperation agreement payment

By Caroline Salls

Pittsburgh, July 2 – LightSquared Inc. did not make a $9.1 million payment due July 1 under its cooperation agreement with Inmarsat plc, triggering a notice of default, according to an Inmarsat news release.

Inmarsat said LightSquared elected to restart phase two of the cooperation agreement in March.

The amount due on Tuesday included a $4.1 million quarterly phase two payment and a $5 million related payment.

According to the release, the July 2 default notice triggers a period of 60 calendar days during which LightSquared can remedy the payment before Inmarsat is entitled to enforce its rights, including pre-agreed spectrum arrangements and termination of certain LightSquared rights under the cooperation agreement.

LightSquared is a Reston, Va.-based wholesale-only 4G-LTE network integrated with satellite coverage. The company filed for bankruptcy on May 14, 2012 in the U.S. Bankruptcy Court for the Southern District of New York under Chapter 11 case number 12-12080.

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