Stricken open-access Long Term Evolution (LTE) start-up LightSquared has announced that it has commenced voluntarily reorganisation cases under Chapter 11 of the US Bankruptcy Code to give it time to resolve regulatory issues that have prevented it from building its coast-to-coast integrated satellite 4G wireless network. The company will also file a recognition proceeding in Canada, which relates to cross-border insolvency cases. The company fully expects to continue normal operations throughout this process. The firm says that it intends to work with all key constituents to conduct an orderly restructuring process with a view to maximising its asset value and exiting Chapter 11 in the quickest and most efficient manner possible. The filing was made in the US Bankruptcy Court for the Southern District of New York and the recognition proceeding will be filed in the Superior Court of Justice in Toronto, Ontario.
Marc Montagner, interim co-chief operating officer and chief financial officer of LightSquared, commented: ‘The filing was necessary to preserve the value of our business and to ensure continued operations. The voluntary Chapter 11 filing is intended to give LightSquared sufficient breathing room to continue working through the regulatory process that will allow us to build our 4G wireless network’.