There was no thunder or lightning yesterday afternoon when beleaguered satellite-broadband wannabe LightSquared filed for Chapter 11, because nearly everyone expected it (for additional information, click here).
The filing was made in the U.S. Bankruptcy Court for the Southern District of New York, and a recognition proceeding will be filed in the Superior Court of Justice in Toronto, Ontario.
The press release on the LightSquared Web site notes: “The company fully expects to continue normal operations throughout this process. All LightSquared distribution partners and customers, including public safety, emergency response, government and military users of LightSquared’s satellite-based communications services can continue to rely on LightSquared to provide them with mission critical communications services.”
Adds Marc Montagner, interim co-COO and CFO, “The filing was necessary to preserve the value of our business and to ensure continued operations. The voluntary Chapter 11 filing is intended to give LightSquared sufficient breathing room to continue working through the regulatory process that will allow us to build our 4G wireless network.”
He continues, “All of our efforts are focused on concluding this process in an efficient and successful manner. LightSquared intends to work with all key constituents to conduct an orderly restructuring process to maximize its asset value and to exit Chapter 11 in the quickest and most efficient manner possible.”