LightSquared gets financing extension, $285 million replacement loan

By Kali Hays

New York, Jan. 30 – 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 an eighth replacement DIP facility that provides up to $285 million of financing, according to separate Friday orders from the U.S. Bankruptcy Court for the Southern District of New York.

The company’s collateral use was extended through April 30 from Jan. 30.

Meanwhile, the replacement DIP facility will mature on the earlier of June 1 and 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 June 1 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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