Ligado Networks LLC is nearing a new financing round to keep the satellite communications venture afloat and avert a near-term bankruptcy filing as it tries to monetize its wireless spectrum holdings, WSJ Pro Bankruptcy reported. The Reston, Va., company is reportedly closing in on an agreement with top creditors to raise roughly $70 million in fresh capital to meet payments due to suppliers and its satellite-industry partner Inmarsat Global Ltd. The terms are still being negotiated. The new financing is intended to cool tensions with Inmarsat and give Ligado more time to pursue its business and avert a near-term chapter 11 filing. Ligado last month warned investors it was running low on cash and needed an infusion to keep operating into 2023, people familiar with the matter said. If the new loan closes, it would likely avert a near-term chapter 11 filing for Ligado, which warned investors last month it was running low on cash and needed an infusion to keep operating into 2023. Ligado has spent most of the past decade seeking regulators’ approval to provide wireless communications services on the ground as well as from orbit. Its bonds and loans are considered some of the riskiest U.S. debt on the market because of uncertainty that it can overcome opposition from the Pentagon and other federal agencies that have raised concerns about interference with Global Positioning System devices and other satellite services used by the military.
