financetom
Technology
financetom
/
Technology
/
Satellite operator Ligado sues Inmarsat after bankruptcy filing
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
Satellite operator Ligado sues Inmarsat after bankruptcy filing
Jan 7, 2025 2:19 PM

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)

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
AZIO Secures Binding Customer Deposits Covering ~42% of $108M GPU Infrastructure Pipeline
AZIO Secures Binding Customer Deposits Covering ~42% of $108M GPU Infrastructure Pipeline
Mar 24, 2026
Coordinated Execution Across AZIO Corp. and AZIO AI Drives Early Customer Commitments as Strategic Alignment with Envirotech Vehicles ( EVTV ) Advances LOS ANGELES, March 24, 2026 /PRNewswire/ -- AZIO AI Corporation (AZIO AI or the Company), a next-generation artificial intelligence infrastructure and high-performance compute platform, today announced it has secured binding, non-refundable customer deposits representing approximately 42% of its...
Tandym Group Acquires InteliNotion, Expanding AI-Driven Structured Content Capabilities for Life Sciences and Regulated Industries
Tandym Group Acquires InteliNotion, Expanding AI-Driven Structured Content Capabilities for Life Sciences and Regulated Industries
Mar 24, 2026
NEW YORK, March 24, 2026 (GLOBE NEWSWIRE) -- Tandym Group, a leader in specialized solutions for the healthcare, life sciences, technology, and professional services industries, today announced its acquisition of InteliNotion, a pioneering software company that provides structured content authoring and AI-enabled component content management for highly regulated environments. The acquisition of InteliNotion further advances Tandym’s strategy to build differentiated, IP-led...
GridCARE Named to Fast Company's Annual List of the World’s Most Innovative Companies for 2026
GridCARE Named to Fast Company's Annual List of the World’s Most Innovative Companies for 2026
Mar 24, 2026
GridCARE is recognized for its AI-native platform that eliminates the multi-year power bottleneck for AI infrastructure while driving grid reliability and affordability. REDWOOD CITY, Calif.--(BUSINESS WIRE)-- GridCARE, the company accelerating time-to-power for modern AI factories, announced today that it has been named to Fast Company’s prestigious list of the World’s Most Innovative Companies for 2026, earning recognition in the...
Move & Connect Partners with KORE to Deliver Seamless Pan-European IoT Connectivity for Critical Industries
Move & Connect Partners with KORE to Deliver Seamless Pan-European IoT Connectivity for Critical Industries
Mar 24, 2026
ATLANTA, March 24, 2026 /PRNewswire/ -- KORE Group Holdings, Inc. ( KORE ) , the global Internet of Things (IoT) Hyperscaler and a leading provider of IoT Connectivity, today announced a strategic alliance with Move & Connect, a French IoT connectivity solutions provider with deep expertise in managed connectivity and regional market deployment. This collaboration combines KORE's robust global network with Move...
Copyright 2023-2026 - www.financetom.com All Rights Reserved