LightSquared plan hearing starts Feb. 23; DIP loan increased, extended

By Caroline Salls

Pittsburgh, Dec. 19 – LightSquared Inc.’s plan of reorganization confirmation hearing is scheduled to begin on Feb. 23, according to a scheduling order filed Friday with the U.S. Bankruptcy Court for the Southern District of New York.

The hearing will continue on Feb. 24 and Feb. 25.

The hearing for approval of the disclosure statement related to the plan is scheduled for Jan. 15. Solicitation of plan votes is expected to begin on Jan. 16, with the votes due on Jan. 25.

In addition, the maturity date for LightSquared’s debtor-in-possession loan was extended under a 19th amendment, and the company will have access to additional $2.5 million in DIP financing.

LightSquared’s DIP facility will be extended to the earlier of Jan. 5 and the final maturity date of the LightSquared LP debtors’ DIP facility.

The company must pay a 3.5% supplement loan commitment fee.

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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