BusinessWeek: LightSquared Reaches Agreement With Lenders
Monday, June 18, 2012
Bankrupt LightSquared has reached an agreement with its lender group, which includes Capital Research & Management Co., Appaloosa Management and Fortress Investment Group, to use cash collateral.
The agreement will give the company enough cash flow to operate until September 2013. LightSquared previously said it would have to liquidate without a lender deal, a BusinessWeek article reported.
LightSquared agreed to pay the lenders $6.25 million a month and let them return to court to move to end the use of cash collateral, the article said. The lenders own about $1.1 billion of debt in the company, and will let LightSquared use about $190 million.
The company filed for Chapter 11 in mid-May in the U.S. Bankruptcy Court in the Southern District of New York.