29 August 2014: Inmarsat has announced that it has received payment of a Phase 2 quarterly payment from LightSquared. This payment was received within the 60 day contractual cure period triggered by a notice of default issued to LightSquared on 2 July 2014.
On 31 March 2014, LightSquared elected to restart Phase 2 of the Cooperation Agreement. On 1 July 2014, a quarterly Phase 2 payment of approximately US$4.1 million and a related payment of US$5.0 million became due, resulting in an aggregate amount due from LightSquared of approximately US$9.1 million. Inmarsat has received this payment from LightSquared within the specified contractual cure period.
Further payments from LightSquared are subject to significant uncertainty. In May 2012, LightSquared filed for a reorganisation under Chapter 11 of the United States Bankruptcy Code and is yet to complete a reorganisation process that would allow LightSquared, among other things, to fund its further operations including payments to Inmarsat. Investors are cautioned that this announcement provides no guarantee that any further payments will be received from LightSquared.
The revenue generation of Inmarsat’s mobile satellite services and Inmarsat Solutions businesses remains unaffected by today’s announcement.