Ligado Networks LLC et al., a group of US-based mobile communications companies, had their Chapter 11 proceedings recognized under the CCAA on January 16.

The companies operate a satellite network across North America that has been providing mobile satellite services (MSS) to government and commercial customers for over 25 years. In the near term, Ligado is planning to evolve its satellite services to easily integrate with terrestrial networks and to communicate directly to standard mobile devices. In addition, Ligado has the authority to develop terrestrial-based solutions for both 5G public and private networks using its coordinated licensed and leased spectrum in the “L-Band,” located in the highly attractive one- to two-GHz spectrum category, known as the lower mid-band.

However, the company states that its efforts to develop its business plans have been severely hampered by steps taken by the US government, which Ligado alleges has unlawfully prevented it from exercising its exclusive L-Band license, costing significant time and billions of dollars in sunk costs and lost profits. Ligado has commenced litigation against the US government in the US Court of Federal Claims.

In addition, Ligado claims that Viasat, its contractual counterparty, breached the integral spectrum coordination agreement between the parties. It has filed a complaint in an adversary proceeding in the Chapter 11 proceedings.

Ligado currently lists approximately $8.6 billion in liabilities, including approximately $5.5 billion to its prepetition first lien noteholders.

The purposes of the insolvency proceedings are to pursue the complaints against the US government and Viasat and to complete a restructuring. Should Ligado successfully execute its restructuring plan, it estimates its indebtedness will be reduced from approximately $8.6 billion to approximately $1.2 billion.

FTI is the information officer.

Counsel is Dentons for Ligado, Stikeman Elliott for the information officer and Blakes for the Ad Hoc Cross-Holder Group.