Satellite operator Inmarsat announced an agreement with US operator LightSquared to amend certain terms of their cooperation agreement between. In addition, LightSquared has made a payment to Inmarsat of USD 56.25 million, as the completion payment for the Phase 1 transition of the spectrum-sharing agreement. Under the revised deal, Inmarsat has agreed to suspend Phase 2 of the 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 late payment of USD 29.6 million which was due 31 March. On 1 April 2014, or an earlier date as elected by LightSquared, Phase 2 payments will recommence, based on a restructured payment plan dependent on certain future outcomes in the deployment of the LightSquared network. A payment due on 4 April in relation to Phase 1.5 of the cooperation agreement also has been renegotiated within the scope of the amended terms for Phase 2. LightSquared will no longer be in default in relation to any payments under the 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 agreement will allow LightSquared additional time to secure regulatory consent that may ultimately lead to the deployment of its network in North America.
