LightSquared gets financing extension, $97.35 million replacement loan

By Caroline Salls

Pittsburgh, Aug. 1 – LightSquared, Inc. received court approval of an extension on the maturity of its debtor-in-possession financing and the use of its cash collateral, and LightSquared, LP received approval of a fifth replacement debtor-in-possession facility that provides $97.35 million of financing, according to separate Friday orders with the U.S. Bankruptcy Court for the Southern District of New York.

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

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

Interest will be 15%, payable in kind.

The maturity date of the LightSquared Inc. DIP loan will be the earlier of Aug. 31 and the maturity date of the LP debtors’ financing.

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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