LightSquared seeks cash collateral access through plan effective date

By Caroline Salls

Pittsburgh, April 1 – LightSquared Inc. requested court approval to use the cash collateral of its pre-bankruptcy secured parties through its plan of reorganization effective date, according to a Tuesday filing with the U.S. Bankruptcy Court for the Southern District of New York.

The company said confirmation of its plan satisfied one of the conditions of its ability to draw on some tranche B loans under an eighth replacement debtor-in-possession facility.

LightSquared said these loans are needed to repay DIP financing and other facility claims and fund the company through the effective date.

According to the motion, the only significant outstanding item related to the term B loans is LightSquared’s continued use of cash collateral, to the extent any exists, through the earlier of Dec. 30, 2015 and the plan effective date.

The company said the cash collateral use is a condition to the combined delayed-draw funding under the eighth replacement DIP financing order.

The cash collateral use is currently set to expire on April 30.

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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