LightSquared Defaults on $56M Payment to Spectrum Owner Inmarsat

LightSquared has defaulted on a $56.25 million payment due under a 2007 wireless spectrum cooperation agreement with Inmarsat, the U.K. satellite communications operator said, adding that it could terminate the agreement if LightSquared doesn't make payment within 60 days.

As of Nov. 2, LightSquared had paid Inmarsat $420.6 million under their spectrum cooperation agreement, of which $268.1 million was paid last year, according to Inmarsat's financial statements. Following LightSquared's failure to pay Monday's $56.25 million installment, Inmarsat said it had given the company notice that it has 60 days to pay, after which Inmarsat can terminate certain of LightSquared's rights to spectrum set out in their cooperation agreement. Inmarsat warned its investors that although it is negotiating with LightSquared, it cannot be sure that it will receive any further payments from the company. The future of LightSquared's project to offer LTE (Long Term Evolution) broadband wireless services across the U.S. using a combination of satellite and terrestrial signals was thrown into doubt last week, when the U.S. Federal Communications Commission said it was minded to withdraw its approval for the project. LightSquared is considering a legal challenge to the FCC's decision.