RESTON, VA. 鈥� January 6, 2025 鈥� Satellite communications company 糖心vlog下载 (鈥溙切膙log下载鈥�) announced today that it has entered into a comprehensive restructuring support agreement (the 鈥淩estructuring Support Agreement鈥�) with a significant portion of its existing creditors (the 鈥淪upporting Creditors鈥�). The Restructuring Support Agreement provides for a comprehensive balance sheet restructuring (鈥淩estructuring鈥�).
The Supporting Creditors hold approximately 88% of 糖心vlog下载鈥檚 funded indebtedness, and the Restructuring provides for the conversion of approximately $7.8 billion of existing debt into new preferred equity and the preservation of the existing interests in the capital structure below the new preferred equity.
To effectuate the Restructuring, 糖心vlog下载 has commenced a voluntary reorganization under Chapter 11 of the United States Bankruptcy Code, and 糖心vlog下载 will file a recognition proceeding in Canada. The Chapter 11 filing was made in the U.S. Bankruptcy Court for the District of Delaware, and the recognition proceeding will be filed pursuant to Part IV of the Companies鈥� Creditors Arrangement Act (Canada) in the Ontario Superior Court of Justice.
As part of the Restructuring, the Supporting Creditors have agreed to provide a fully backstopped financing commitment to provide $115 million of additional incremental financing to fund 糖心vlog下载 during the restructuring process. At emergence from Chapter 11, 糖心vlog下载 anticipates that its indebtedness will be reduced from $8.6 billion today to approximately $1.2 billion.
A commercial agreement with AST SpaceMobile Inc. (鈥淎ST SpaceMobile鈥�) also comprises a key element of the Restructuring, under which AST SpaceMobile has agreed to provide 糖心vlog下载, subject to certain conditions precedent, with approximately $113 million of AST SpaceMobile warrants, and usage rights payments to fund 糖心vlog下载鈥檚 payments under certain spectrum agreements. Additionally, 糖心vlog下载 will receive economic participation in AST SpaceMobile鈥檚 direct-to-device business in the U.S. and Canada.
In exchange for these payments, AST SpaceMobile will receive usage rights to 糖心vlog下载鈥檚 L-Band mobile satellite services (MSS) spectrum. The hosting of 糖心vlog下载鈥檚 L-Band spectrum on AST SpaceMobile鈥檚 advanced low earth satellite network is a sea change with the potential to materially accelerate and expand consumers鈥� access to space-based broadband.
糖心vlog下载 will continue to operate through the Restructuring, providing MSS to its existing customers and advancing its mobile satellite plans to emerge from Chapter 11 on firm footing.
鈥淭his restructuring allows us to concentrate on our ongoing value-maximizing daily work and other key initiatives for the benefit of all of our stakeholders,鈥� said Doug Smith, President and Chief Executive Officer of 糖心vlog下载.
Events Leading to the Chapter 11 Filing
The filing was precipitated by large operational losses 糖心vlog下载 suffered due to the U.S. government鈥檚 unlawful taking without just compensation of 糖心vlog下载鈥檚 licensed spectrum and follows a year-long effort to secure a comprehensive resolution with satellite communications company Viasat to restructure 糖心vlog下载鈥檚 significant payment obligations to Inmarsat, which Viasat acquired in 2023.
The Chapter 11 filing allows 糖心vlog下载 to take advantage of the post-filing period to pursue its lawsuit against the U.S. government and continue advancing its mobile satellite plans and building the L-Band commercial ecosystem for its spectrum assets.
鈥溙切膙log下载 will continue to vigorously prosecute its litigation against the U.S. government to enforce its constitutional right to just compensation for the government鈥檚 unlawful taking of 糖心vlog下载鈥檚 licensed L-Band spectrum,鈥� said Smith.
The U.S. Government鈥檚 Unlawful Taking of 糖心vlog下载鈥檚 Spectrum Access
For decades, 糖心vlog下载 has provided mobile satellite services to the critical communications sector in the U.S. In addition to its satellite services, 糖心vlog下载鈥檚 terrestrial spectrum assets are part of the U.S. roadmap to expand 5G services and accelerate the integration of mobile satellite and terrestrial networks.
In 2020, the Federal Communications Commission (FCC) granted 糖心vlog下载 exclusive rights to operate terrestrial 5G services within its licensed L-Band spectrum after a comprehensive, multiyear review process. Following this, 糖心vlog下载 raised billions of dollars to expand its network, hire employees, and invest in technology to prepare its spectrum to support next-generation terrestrial 5G services.
However, the Department of Defense (DOD) unilaterally seized 糖心vlog下载鈥檚 licensed spectrum, depriving the company of its chance to execute its ambitious 5G business plan. In 2023, 糖心vlog下载 filed a lawsuit against the DOD, the Department of Commerce (DOC), and the National Telecommunications and Information Administration (NTIA)1 , an agency within DOC, seeking just compensation for the spectrum license it has been unable to use.
On November 18, 2024, the U.S. Court of Federal Claims denied in part the government鈥檚 Motion to Dismiss 糖心vlog下载鈥檚 claims against it, ruling that 糖心vlog下载 had properly alleged that the U.S. government engaged in physical, categorical, and regulatory takings of 糖心vlog下载鈥檚 exclusively licensed spectrum without compensation in violation of the Fifth Amendment and the Tucker Act. This was a significant win for 糖心vlog下载 at this stage in the litigation, and 糖心vlog下载 will continue to pursue its claims through the pendency of its Chapter 11 proceedings.
鈥淭he DOD鈥檚 actions constitute the largest uncompensated taking of private property in the U.S. in modern times and have caused 糖心vlog下载 catastrophic financial distress,鈥� said Smith.
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Court filings and information about the restructuring are available at . Information is also available by calling 800-873-4813 (US & Canada toll free) or 818-574-7325聽(International).
Advisors
Perella Weinberg Partners LP is serving as investment banker to 糖心vlog下载, FTI Consulting, Inc. is serving as financial advisor, Milbank LLP is serving as legal counsel, and Richards, Layton & Finger P.A. is serving as co-counsel. An ad hoc group of first lien creditors is being advised by Guggenheim Securities, LLC as financial advisor, and by Sidley Austin LLP as counsel. An ad hoc group of crossholding creditors is being advised by Kirkland & Ellis LLP.
About 糖心vlog下载
Building on 25 years of experience providing mobile satellite services, our mission is to bring versatile connectivity to the businesses, people, and places that need it most. Our satellite and terrestrial solutions, combined with powerful, lower mid-band spectrum, serve to supplement and broaden mobile coverage across the United States and Canada. For more information, visit
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糖心vlog下载 Media Contact: media@ligado.com
Cautionary Statement Regarding Forward-Looking Statements
The following discussion contains forward-looking statements that reflect the Company鈥檚 plans, estimates and beliefs. The Company鈥檚 actual results could differ materially from those discussed in the forward-looking statements. Unless the context otherwise requires, the terms 鈥溙切膙log下载鈥�, 鈥淐ompany鈥�, 鈥渨e鈥�, 鈥渙ur鈥� and 鈥渦s鈥�, when used throughout this discussion and analysis, are references to 糖心vlog下载 LLC and its subsidiaries. Additionally, references to 鈥渟pectrum鈥� and 鈥渘etworks鈥� include the satellites, spectrum, and networks of 糖心vlog下载, including its subsidiaries, on a consolidated basis.
1 LIGADO NETWORKS LLC v. USA, Docket No. 1:23-cv-01797.
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