RESTON, Va.--(BUSINESS WIRE)--LightSquared announced today that it commenced voluntarily reorganization cases under Chapter 11 of the U.S. Bankruptcy Code to give it time to resolve regulatory issues that have prevented it from building its coast-to-coast integrated satellite 4G wireless network. The company will also file a recognition proceeding in Canada.
The company fully expects to continue normal operations throughout this process. All LightSquared distribution partners and customers, including public safety, emergency response, government and military users of LightSquared’s satellite-based communications services can continue to rely on LightSquared to provide them with mission critical communications services.
“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,” said Marc Montagner, interim co-chief operating officer and chief financial officer of LightSquared. “All of our efforts are focused on concluding this process in an efficient and successful manner.”
LightSquared intends to work with all key constituents to conduct an orderly restructuring process to maximize its asset value and to exit Chapter 11 in the quickest and most efficient manner possible.
LightSquared expects that its current management team will continue to lead the company throughout this process.
The filing was made in the U.S. Bankruptcy Court for the Southern District of New York and the recognition proceeding will be filed in the Superior Court of Justice in Toronto, Ontario.
For more information about the company’s restructuring, including all pleadings in the process, please visit www.kccllc.net/LightSquared. You may also access the court website at www.nysb.uscourts.gov (a PACER account is required).
LightSquared is a mobile communications provider currently serving government customers, public safety, and the commercial transport and logistics industries. The company has invested more than $4 billion to deploy an integrated satellite-terrestrial network which will provide next generation, high-speed mobile services on a nationwide basis. LightSquared’s state-of-the-art satellite – successfully launched in 2010 – will be combined with 4G LTE terrestrial technology to create a nationwide communications system that offers superior coverage and mobile broadband speeds. LightSquared’s integrated satellite-terrestrial network will expand wireless broadband capacity at a time when demand is increasing exponentially. LightSquared’s wholesale-only business model will enable existing and new service providers to sell their own devices, applications and services – at a competitive cost and without retail competition from LightSquared. For more information, please go to www.LightSquared.com, www.facebook.com/LightSquared and www.twitter.com/LightSquared.
This release contains forward-looking statements and information regarding LightSquared and its business. Such statements are based on the current expectations and certain assumptions of LightSquared’s management and are, therefore, subject to certain risks and uncertainties. The forward-looking statements expressed herein relate only to information as of the date of this release. LightSquared has no obligation to update these forward-looking statements to reflect events or circumstances after the date of this release, nor is there any assurance that the plans or strategies discussed in this release will not change.