29 August 2014 – Inmarsat, (LSE:ISAT.L), the leading provider of global mobile satellite communications services, provides the following update with regard to its Cooperation Agreement with LightSquared. Inmarsat today announces 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.
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Inmarsat plc is the leading provider of global mobile satellite communications services. Since 1979, Inmarsat has been providing reliable voice and high-speed data communications to governments, enterprises and other organizations, with a range of services that can be used on land, at sea or in the air. Inmarsat employs around 1,600 staff in more than 60 locations around the world, with a presence in the major ports and centres of commerce on every continent. Inmarsat is listed on the London Stock Exchange (LSE:ISAT.L). For more information, please visit www.inmarsat.com.