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 >
Intel's Options: A Look at What the Big Money is Thinking
Intel's Options: A Look at What the Big Money is Thinking
Jun 14, 2024
Investors with a lot of money to spend have taken a bearish stance on Intel ( INTC ) . And retail traders should know. We noticed this today when the trades showed up on publicly available options history that we track here at Benzinga. Whether these are institutions or just wealthy individuals, we don't know. But when something this big...
3 Analysts Have This To Say About Varonis Systems
3 Analysts Have This To Say About Varonis Systems
Jun 14, 2024
Varonis Systems ( VRNS ) has been analyzed by 3 analysts in the last three months, revealing a diverse range of perspectives from bullish to bearish. The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months. Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish Total...
Unpacking the Latest Options Trading Trends in ASML Holding
Unpacking the Latest Options Trading Trends in ASML Holding
Jun 14, 2024
Financial giants have made a conspicuous bullish move on ASML Holding ( ASML ). Our analysis of options history for ASML Holding ( ASML ) revealed 39 unusual trades. Delving into the details, we found 51% of traders were bullish, while 33% showed bearish tendencies. Out of all the trades we spotted, 10 were puts, with a value of $595,660,...
ICC probes cyberattacks in Ukraine as possible war crimes, sources say
ICC probes cyberattacks in Ukraine as possible war crimes, sources say
Jun 14, 2024
THE HAGUE/LONDON (Reuters) -Prosecutors at the International Criminal Court are investigating alleged Russian cyberattacks on Ukrainian civilian infrastructure as possible war crimes, four sources familiar with the case have told Reuters. It is the first confirmation that attacks in cyberspace are being investigated by international prosecutors, which could lead to arrest warrants if enough evidence is gathered. The probe is...
Copyright 2023-2026 - www.financetom.com All Rights Reserved