Telecom Lead America: LightSquared, a mobile
communications provider currently serving government customers, public safety,
and the commercial transport and logistics industries, has begun voluntarily
reorganization cases under Chapter 11 of the U.S. Bankruptcy Code.
The restructuring will provide 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. Furthermore, the company said that it expects to continue normal
operations throughout this process.
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.
The company said that All LightSquared distribution
partners and customers of LightSquared’s satellite-based communications
services can continue to rely on LightSquared to provide them with mission
critical communications services.
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.
Ruling on LightSquared license is unsupported by any FCC
policy: LightSquared
Recently, LightSquared said that a ruling proposed by FCC
that would effectively revoke LightSquared’s license to operate its network is
unsupported by the law, science, and FCC policy.
The commission’s proposal is wholly inconsistent with a
proposal the Commission made last week in the case of another terrestrial
network that raised interference concerns.
