LightSquared was able to gain a small amount of breathing room in their defaulted payments to Inmarsat today, when they paid the company $56.25 million.
Inmarsat reported Friday that LightSquared’s payments are now up to date, and they do not have to make another payment until 2014. LightSquared is a U.S. company who is attempting to build a mobile network using Inmarsat, a British satellite firm’s spectrum.
The U.S. company is backed by Philip Falcone’s Harbinger Capital Partners, and looks forward to the breathing space, as it allows the company to fight for regulatory clearance for the network.
In February, LightSquared’s plans for their network were quickly derailed by the U.S. Federal Communications Commission, who said they were forced to block the venture after finding out the wireless signal could interfere with global-positioning systems. These systems are used by many worldwide, from farmers to airline pilots, drivers, and the military.
So far, Falcone has invested almost $3 billion into the plan, which entails building a high-speed data network. Inmarstat stated Friday that:
“The deployment of the LightSquared network remains a substantive revenue opportunity for Inmarsat…this amendment is in the best interests of Inmarsat’s shareholders.”
Doug Smith, Interim Chief Operating Officer, put forth in a statement that the new agreement between his company, LightScribe, and Inmarsat will allow the company “to focus its efforts on obtaining the necessary regulatory approvals” for its network.
Inmarsat also commented that they are highly hopeful that LightSquared will continue in their payments, which include about $525 million in unpaid rent for the British company’s satellites.
