Jan 7 (Reuters) - Bankrupt satellite communications
company Ligado on Tuesday sued its contract partner Inmarsat
over a 2007 spectrum leasing agreement, seeking to recoup up to
$1.7 billion in payments under the agreement.
Ligado, which filed for Chapter 11 protection late Sunday,
said the UK-based satellite telecommunications company violated
the 2007 agreement meant to coordinate the two companies' use of
in-demand radio frequencies for mobile communications and other
commercial uses.
Inmarsat failed to make required upgrades to its satellite
network and continued to demand payments from Ligado, despite
the fact that a dispute with the U.S. government prevented
Ligado from monetizing the leased spectrum, according to a
complaint filed Tuesday in Delaware bankruptcy court.
An Inmarsat spokesman said Tuesday that the complaint had no
legal merit and was replete with "unfounded allegations".
Inmarsat attorney Laura Davis Jones said in a Tuesday court
hearing in Wilmington, Delaware, that Ligado was $500 million
behind on its contractually required lease payments, with
additional obligations accruing quarterly.
"We see it very differently," Jones told U.S. Bankruptcy
Judge Thomas Horan, who is overseeing Ligado's Chapter 11 case.
"Inmarsat has not been paid for years."
Horan approved some routine initial steps in Ligado's
bankruptcy restructuring on Tuesday, such as allowing it to pay
employee wages and access additional financing provided by its
existing lenders. Ligado entered bankruptcy with a restructuring
agreement that would cut $7.8 billion debt if approved in court.
Ligado's complaint alleged that the Inmarsat cooperation
agreement was crucial to its stalled plan to use land-based
cellular towers to supplement its satellite-based mobile
services in a spectrum of frequencies known as the L Band.
The agreement required Inmarsat to upgrade its own satellite
terminals, which are installed on airplanes and ships, to
eliminate potential signal interference near airports and
waterways, but Inmarsat failed to make the upgrades, according
to Ligado's complaint.
Ligado also alleged that Inmarsat stood by while the U.S.
Department of Defense blocked Ligado's proposed expansion of
land-based wireless services over concerns about the potential
interference with global positioning satellite (GPS) systems.
Ligado has sued the DOD and other federal agencies over their
decision to block it from using a portion of the wireless
spectrum that was allocated to Ligado by the U.S. Federal
Communications Commission.
Inmarsat, through its other work with the Defense
Department, likely knew that the government would prevent
Ligado's planned expansion into land-based 5G wireless services,
but it continued to induce Ligado into making additional
contract payments, according to the complaint.
The case is: Ligado Networks LLC v. Inmarsat Global Ltd,
U.S. Bankruptcy Court for the District of Delaware, No. 25-5000
For Ligado: Andrew Leblanc of Milbank
For Inmarsat: Laura Davis Jones of Pachulski Stang Ziehl &
Jones
Read more:
Ligado files for bankruptcy after stalled wireless expansion
Pentagon warns of GPS interference from Ligado broadband
network
(Reporting by Dietrich Knauth in New York)