Wireless spectrum venture Ligado Networks is preparing to file for bankruptcy within weeks after negotiations with the U.S. over a multibillion-dollar claim asserted by the company fell apart, WSJ Pro Bankruptcy reported. Ligado is expected to file for chapter 11 because it can’t pay off or refinance some $4 billion in debt that comes due in November, these people said. Ligado had hoped for a last-minute infusion of capital from the government, which the company has long accused of improperly blocking it from commercializing a valuable block of wireless spectrum. But the company instead sued the government for $39 billion on Thursday after the negotiations failed to produce a settlement. Ligado is now preparing a restructuring that would wipe out much or all of the company’s debt and replace it with tranches of preferred and common equity, people familiar with the company’s plans said. The company set the restructuring in motion earlier this year, aiming to allow for commercial deals involving its satellite service with a leaner balance sheet free of imminent debt obligations.
