Wireless venture Ligado Networks LLC is in talks with key creditors and shareholders to restructure about $8 billion in debt and other obligations while buying time to monetize its 5G-network assets, WSJ Pro Bankruptcy. The company, formerly known as LightSquared, faces a large maturity of senior debt which comes due in December. While earlier this year Ligado won Federal Communications Commission approval to use its wireless spectrum licenses to support a ground-based network, the company is a long way off from completing the project and generating revenues from it to help address the debt maturity. Ligado has said that its wireless licenses could support emerging fifth-generation, or 5G, communications that serve factories, power utilities and other businesses looking to link their infrastructure to the internet. Ligado continues to face opposition from elected officials concerned that the network could potentially interfere with other wireless systems, including military operations, GPS and weather forecasting services. A group of senators led by Sen. James Inhofe (R-Okla.) has asked the FCC to “stay and reconsider” its April decision allowing Ligado to move forward. In order to overcome the impending financial hurdle, Ligado is discussing a potential set of transactions that would convert its roughly $5.2 billion of junior debt and $2.6 billion of preferred equity into common shares. By reducing a substantial portion of debt, it would make it easier for Ligado to refinance the roughly $2.2 billion of senior loans that mature this December. The company is also looking to raise new debt to help provide additional liquidity.
