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Bankruptcy protection for LightSquared
15 May 2012
Philip Falcone's LightSquared files for Chapter 11 bankruptcy but still wants to build 4G network
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LightSquared
chapter 11
4G
satellite
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Ahuja
LightSquared has filed for Chapter 11 bankruptcy protection in the US bankruptcy court in Manhattan with an aim to solve regulatory issues over its projected satellite-based 4G wireless network. In its filing, LightSquared listed assets of $4.48 billion and debt of $2.29 billion as of February 29 2012.
Marc Montagner, LightSquared’s interim co-chief operating officer and chief financial officer, said: “The filing was necessary to preserve the value of our business and to ensure continued operations. The voluntary Chapter 11 filing is intended to give LightSquared sufficient breathing room to continue working through the regulatory process that will allow us to build our 4G wireless network.”
LightSquared said it intends to work with all important constituents to carry out a systematic restructuring process and to exit Chapter 11 in the most efficient manner possible.
The operator expects to carry on with normal operations and also expects its present management team to continue to lead the company throughout this procedure. The operator will also file a recognition proceeding in Canada.
Montagner added: “All of our efforts are focused on concluding this process in an efficient and successful manner.” GTB
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