LightSquared files for Chapter 11
As widely expected, LightSquared filed for Chapter 11 bankruptcy protection. The company reported assets and debts, each exceeding $1 billion.
The Wall Street Journal had reported over the weekend that LightSquared was preparing for bankruptcy, even as it negotiated with lenders to avoid a default.
According to LightSquared’s filing, Boeing Satellite Systems is its biggest unsecured creditor, with a disputed $7.5 million claim, followed by Alcatel-Lucent with a $7.3 million disputed claim.
LightSquared’s stated mission was to revolutionize the U.S. wireless industry through the creation of a wholesale-only nationwide LTE network integrated with satellite coverage.
But the GPS industry said it interfered with mission-critical services, and the FCC in February moved to block it from moving forward after the National Telecommunications Information Administration (NTIA) concluded there was no practical way to mitigate potential interference.
LightSquared’s main backer is Philip Falcone and his hedge fund Harbinger Capital Partners.