LightSquared announced 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 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.
LightSquared intends to work with all key constituents to conduct an orderly restructuring process to maximize its asset value and to exit Chapter 11 in the quickest and most efficient manner possible.
Read a previous reaction from agricultural and farm equipment organizations as they urged the Federal Communications Commission to withdraw the conditional waiver granted to LightSquared in 2011 and modify the company’s satellite license to prohibit the building of a ground-based network.