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.
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