LightSquared officially files for Chapter 11 bankruptcy
By Darren Murph posted May 14th 2012 2:24PM
As expected, May 14th is indeed a dark day for LightSquared. The company has just filed court paperwork in order to initiate Chapter 11 bankruptcy proceedings, effectively killing its dream of providing a high-speed mobile wireless network to upwards of 260 million people. Not quite a year after Sprint and LightSquared put together an agreement that would ensure 15 years of blissful LTE enjoyment together, Philip Falcone’s baby looks weaker than ever. With the Sprint tie-up now voided, and over $1.6 billion in debt, there’s probably not too many places for LS to turn. The primary hurdle — one it never could seem to overcome — was the FCC’s outright refusal to believe any of the company’s mitigation proposals in relation to GPS interference issues. Despite “profoundly disagreeing” and raising all sorts of chaos in an effort to get its way, LightSquared never did manage to convince the powers that mattered. Where it turns from here is anyone’s guess, but it won’t be a quiet fall from grace, we’re surmising.
Here is the original post: LightSquared officially files for Chapter 11 bankruptcy
