Inmarsat reports non-payment by LightSquared under Cooperation Agreement

2 July 2014 – Inmarsat plc 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.

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.  This payment has not been received.

On 2 July 2014 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.

The revenue generation of Inmarsat’s mobile satellite services and Inmarsat Solutions businesses remains unaffected by today’s announcement.

Contact for enquiries:

Chris McLaughlin

Tel: +44 (0)7796 276033