Once facing bankruptcy and defaulting on owed payments, LightSquared has been given a reprieve in its payment schedule with Inmarsat. LightSquared and Inmarsat have announced this morning that it has reached an agreement with Inmarsat to amend the Cooperation Agreement between the to companies, after a $56.5 million payoff of past balances by LightSquared. The amended agreement will give LightSquared an additional 2 years to save face, postponing payments of over $29 million to Inmarstat until April 1, 2014.
The move gives LightSquared the time it needs to obtain governmental approvals to build a nationwide wireless broadband network. LightSquared is aiming to bring increased competition to the broadband market and to fulfill one of the country’s goals of bringing high-speed LTE data connectivity to rural communities.
Assuming LightSquared loses their appeal of the FCC’s decision to block LightSquared’s network development plans, LightSquared will be working closely with the Government to ensure the GPS issues that brought their network development to a halt this year won’t happen again.
[via LightSquared, PhoneScoop]