1 October 2014 – 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.
On 30 September 2014, a quarterly Phase 2 payment of US$12.5 million and a related payment of US$5.0 million became due, resulting in an aggregate amount due from LightSquared of US$17.5 million. This payment has not been received.
On 1 October 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 group business 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). The Inmarsat press release newsfeed and corporate updates are on Twitter @InmarsatGlobal