Inmarsat has issued a default notice to partner LightSquared after the latter failed to make a payment due under their cooperation agreement. LightSquared agreed to a series of scheduled payments to Inmarsat in line with contractual milestones in their spectrum leasing agreement. A payment of USD 56.25 million became due upon completion of "Phase 1 transition" which has now occurred, Inmarsat said. This payment has not been received. LightSquared now has 60 days to make the payment or Inmarsat can invoke additional rights under the agreement, including pre-agreed spectrum arrangements and termination of certain LightSquared rights. The announcement from Inmarsat follows the FCC withdrawing preliminary approval for LightSquared's planned mobile/satellite network in the US, due to radio interference with GPS devices. Inmarsat said it was in talks with LightSquared about the future of their agreement. In a statement, LightSquared said it still has "several matters that require resolution" before completing Phase 1 of its agreement with Inmarsat. The terms of the agreement allow for additional time to resolve pending questions before phase one is complete and the final payment is due, the company noted. It added that it expects Inmarsat to remain an important partner.
