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Tuesday, May 15, 2012
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LightSquared Files For Bankruptcy
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Wireless startup LightSquared filed for bankruptcy protection on Monday.
The company said 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 company said in a statement.
"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.
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. |
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