LightSquared debtor secures OK for $73.96 million replacement loan

By Caroline Salls

Pittsburgh, April 10 - LightSquared LP obtained final court approval to obtain $73.96 million of replacement debtor-in-possession financing, according to a Thursday filing with the U.S. Bankruptcy Court for the Southern District of New York.

The replacement financing will be provided by some members of an informal group of pre-bankruptcy lenders, including Capital Research and Management Co. and Cyrus Capital Partners, LP on behalf of its affiliates' managed funds and/or accounts, as well as by Intermarket Corp., Solus Alternative Asset Management LP, Fortress Credit Corp. on behalf of its affiliates' managed funds and/or accounts, fund entities managed by Aurelius Capital Management, LP and SP Special Opportunities, LLC.

Interest on the replacement financing will be 15%, payable in kind.

The facility will mature on the earlier of June 15 and the effective date of the company's plan of reorganization.

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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