Ligado CEO: U.S. and Viasat Actions Forced Chapter 11
Ligado's Chapter 11 bankruptcy stems from the U.S. government opposing company efforts to create a terrestrial wireless network using L-band spectrum, as well as Viasat's attempts at obtaining sole access to that same spectrum, Ligado's CEO contends. In an affidavit…
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submitted Monday with the U.S. Bankruptcy Court in Delaware (docket 25-10006) as part of Ligado's Chapter 11 filing (see 2501060026), Doug Smith said government action -- particularly by DOD -- has deprived it of substantial revenue while the company also has invested heavily in an L-band terrestrial network. Smith said unfounded claims about how Ligado's proposed service could interfere with GPS have hurt the company's future revenue potential "by creating substantial uncertainties and pressure" on its business model and prospects. "As a result, the Debtors do not yet generate adequate cash flows from operations to fund their operating expenses and capital expenditures," Smith said. Separately, talks with Viasat over the amount paid to Inmarsat regarding Ligado's and Inmarsat's L-band coordination were suddenly "upended," Smith said. Viasat rejected alternatives to the Ligado/Inmarsat cooperation agreement terms "and revealed that its true intent is to access the Debtors’ spectrum," he said. It "became clear in the weeks leading up to the commencement of these Chapter 11 Cases that, in reality, Viasat was not interested in reaching a workable commercial resolution." Ligado has litigation pending before the U.S. Court of Federal Claims against the U.S. over the L-band spectrum (see 2411180023). Viasat didn't comment Tuesday.