Ligado information for chapter after stalled wi-fi growth

By Dietrich Knauth

NEW YORK (Reuters) – Wi-fi community firm Ligado Networks LLC filed for chapter in Delaware late on Sunday, searching for to chop $7.8 billion in debt after U.S. authorities companies blocked its deliberate growth into land-based 5G wi-fi providers.

Ligado had invested closely in plans to broaden its cell 5G community into a brand new spectrum that makes use of decrease frequency radio waves after receiving a U.S. Federal Communications Fee allow in 2020. However the U.S. Division of Protection blocked the deliberate growth, saying Ligado’s wi-fi indicators would intrude with navy international positioning system (GPS) receivers.

Ligado mentioned in a press release on Monday that the chapter submitting will enable it to deal with money owed which are not sustainable with out the earnings it might have acquired from the growth.

A majority of the corporate’s lenders have agreed to transform $7.8 billion of debt into fairness shares, which would cut back the corporate’s complete debt to $1.2 billion, in line with Ligado. The corporate will proceed to function and supply cell satellite tv for pc providers throughout its debt restructuring.

Ligado sued the Protection Division and different U.S. companies over its entry to extra spectrum 2023, saying that the federal government’s actions disadvantaged it of as much as $39 billion in potential earnings from the FCC (BME:FCC) license. A federal choose in Washington D.C. allowed the lawsuit to proceed in a November 2024 ruling, rejecting the U.S. authorities’s try to dismiss it.

Ligado president and CEO Doug Smith mentioned in Monday’s assertion that the corporate will proceed to vigorously pursue its litigation in opposition to the U.S. authorities. The Protection Division declined to remark.

Ligado, previously referred to as Lightsquared, beforehand filed for chapter in 2012.