Inmarsat today announces that a payment due from LightSquared under the terms of the Cooperation Agreement between the two companies has not been received. As a result Inmarsat has issued a notice of default to LightSquared in accordance with the terms of the agreement.Under the Cooperation Agreement, LightSquared has been making a series of scheduled payments to Inmarsat in line with contractual milestones. A payment of US$56.25 million became due upon the completion of “Phase 1 transition” which has now occurred. This payment has not been received.
On 20 February 2012 Inmarsat issued a notice of default to LightSquared under the Cooperation Agreement. This notice triggers a period of 60 calendar days during which LightSquared can remedy the payment before Inmarsat is entitled to enforce its rights and remedies under the agreement for payment default, including pre-agreed spectrum arrangements and termination of certain LightSquared rights under the Cooperation Agreement.
Inmarsat and LightSquared have entered into discussions regarding the future of the Cooperation Agreement, but Inmarsat cannot provide any assurance that these discussions will result in any further payments being received from LightSquared. The revenue generation of Inmarsat's core mobile satellite services and Inmarsat Solutions businesses remains unaffected by today's announcement.
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