LightSquared gets cash use extension, $77.1 million replacement loan

By Caroline Salls

Pittsburgh, July 24 – LightSquared, Inc. received court approval of an extension on the use of its cash collateral, and LightSquared, LP received approval of a fourth replacement debtor-in-possession facility that provides $77.1 million of financing, according to separate Thursday orders with the U.S. Bankruptcy Court for the Southern District of New York.

The company’s collateral use was extended through July 31 from July 21.

Meanwhile, the replacement DIP facility will mature on the earlier of July 31 or the effective date of a plan of reorganization.

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.

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