LightSquared benefactor Philip Falcone has reportedly agreed to eventually take his claws out of the beleaguered wireless company in an attempt to prevent the operator from going bankrupt. Falcone currently runs Harbinger Capital Partners, which has invested more than $2.9 billion into LightSquared.
The Wall Street Journal reported late yesterday that Falcone’s decision will lead LightSquared’s investors to grant the company a one-week extension on its debt waiver that was set to expire today. The extension will result in the parties re-negotiating terms for a longer term extension of the waiver.
LightSquared has rights to a significant amount of spectrum in the 1.6 GHz band that it was looking to use to deploy a terrestrial mobile broadband network using LTE technology. However, the carrier has so far been unable to get its hands on most of those spectrum assets due to interference concerns with certain ground-based GPS systems. The company is continuing to support its satellite-based communications service.
(View LightSquared Chairman Sanjiv Ahuja discuss the company’s plans to continue fighting for its spectrum rights at the recent Rural Cellular Association Spring Expo.)
LightSquared recently re-negotiated an agreement with Inmarsat that will provide LightSquared with more time in which to attempt to secure access to its spectrum. A report from Reuters noted that the agreement included an overdue $56.25 million payment to Inmarsat. LightSquared has had an agreement with Inmarsat over the re-banding of spectrum assets.
Bored? Why not follow me on Twitter?
