Inmarsat and LightSquared agree amended terms for
Cooperation Agreement
20-04-2012 - Inmarsat today announces that it has reached
agreement with LightSquared to amend certain terms of the
Cooperation Agreement between the two companies. In
connection with the amended terms, LightSquared has made a
payment to Inmarsat of US$56.25 million, being the
completion payment for Phase 1 transition which had
previously been outstanding.
Under the terms of the amendment, Inmarsat has agreed to
suspend Phase 2 of the Cooperation Agreement until 31 March
2014. LightSquared may, at its option, elect to restart
Phase 2 prior to this date. During the period of suspension
LightSquared will not be required to make any Phase 2
payments to Inmarsat, including the formerly overdue
payment of US$29.6 million which was due 31 March 2012.
On 1 April 2014, or an earlier date as elected by
LightSquared, Phase 2 payments will recommence from that
date based on a restructured payment plan that will differ
from the previous Phase payments and be dependent on
certain future outcomes with regard to deployment of the
LightSquared network. A payment due on 4 April 2012 in
relation to Phase 1.5 of the Cooperation Agreement has been
renegotiated within the scope ofthe amended terms for Phase
2.
As a result of the amendment announced today, LightSquared
will no longer be in default in relation to any payments
under the Cooperation Agreement. Notices of default issued
by Inmarsat to LightSquared in relation to previous
non-payment events will no longer have any effect.
The amended terms of the Cooperation Agreement will allow
LightSquared additional time to secure regulatory consents
that may utimately lead to the deployment of its ATC
network in North America. The deployment of the
LightSquared network remains a substantive revenue
opportunity for Inmarsat, through Phase 2 of the
Cooperation Agreement, and Inmarsat believes this amendment
is in the best interests of Inmarsat's shareholders.
Contact: Inmarsat plc, London, UK
Investor Enquiries:
Simon Ailes
Tel: +44 (0)20 7728 1518
simon.ailes@inmarsat.com
Media Enquiries:
Chris McLaughlin
Tel: +44 (0)77 9627 6033
chris.mclaughlin@inmarsat.com
Recommend:
