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Alliance News

Inmarsat Not Yet Received LightSquared Payment Under Cooperation Agreement

Wed, 2nd Jul 2014 16:46

LONDON (Alliance News) - Inmarsat PLC, the mobile satellite communications services provider, said Wednesday that it has not yet received payment due from LightSquared under a cooperation agreement between the two companies.

Back in April, Inmarsat said that further payments from its cooperation agreement with its US partner LightSquared were subject to "significant uncertainty" because LightSquared filed for reorganisation May 2012, after LightSquared decided to restart Phase 2 of its cooperation agreement with Inmarsat.

In a statement Wednesday, Inmarsat said that payments totalling USD9.1 million had still not been received, and as a result it issued a notice of default to LightSquared under the cooperation agreement.

The company said that the notice triggers a 60 day period, during which LightSquared can pay the amount, before Inmarsat is entitled to enforce its rights and remedies under the agreement for payment default.

"The revenue generation of Inmarsat's mobile satellite services and Inmarsat Solutions businesses remains unaffected by today's announcement," the company said in its statement Wednesday.

Inmarsat shares closed 0.8% lower Wednesday at 750.50 pence. The company issued the statement after the market close.

By Rowena Harris-Doughty; rowenaharrisdoughty@alliancenews.com; @rharrisdoughty

Copyright 2014 Alliance News Limited. All Rights Reserved.

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