LightSquared DIP facility increase and maturity extension approved

By Caroline Salls

Pittsburgh, Oct. 31 – LightSquared Inc. received court approval to increase the amount of its debtor-in-possession facility, according to an Oct. 31 filing with the U.S. Bankruptcy Court for the Southern District of New York.

Specifically, the principal amount will be increased to $106.95 million, plus a $2 million supplemental loan and a related 350 basis point commitment fee. The commitment fee could be waived if milestones related to plan confirmation and payment of loan claims are met by the company.

Also under the 15th DIP financing amendment, the facility will be extended to the earlier of Nov. 14 and the final maturity date of the LightSquared LP debtors’ DIP facility.

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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