Revolution in the satellite market: Ligado and AST Spacemobile close mega deal!

Revolution in the satellite market: Ligado and AST Spacemobile close mega deal!

In a pioneering step for the telecommunications industry, a judge approved a contract between Ligado Networks and AST Spacemobile Inc. on Monday. This deal, which provides for a partnership in the development of satellite -based broadband services, could significantly influence Ligado's business. Approval is a significant progress for Ligado, which is in a restructuring process to reduce its significant debt burden - fasting $ 8 billion.

The comprehensive restructuring that Ligado has announced concerns a spacious package that has been agreed with a large part of the creditors who hold around 88 % of the financed liabilities. Under these circumstances, a change of around $ 7.8 billion of existing debts to new preferential shares is made. In addition, Ligado has initiated a voluntary reorganization process as part of the Chapter 11 bankruptcy and also intends to initiate a recognition procedure in Canada. Supporting creditors have agreed to provide additional $ 115 million in financial aid during the restructuring process.

effects of bankruptcy on the future

Ligado expects his debts to drop from $ 8.6 billion to around $ 1.2 billion after the chapter 11 procedure was completed. This is supported by a commercial agreement with AST Spacemobile, which includes payments of around $ 113 million for warrants and usage rights in order to finance Ligado's spectrum agreements. In addition, Ligado will have access to AST Spacemobile's business with direct devices in the USA and Canada.

The story of Ligado is not unsolved, however: the company had to accept massive operational losses because the US government prevented it from using its licensed spectrum. This led to a lawsuit against the US government on compensation, whose procedures can now be continued despite the partial rejection of the government's application. Ligado has proven in the past that it is constantly offering mobile satellite services and is part of the plan to expand the 5G services in the USA after the Federal Commission granted him exclusive rights for the use of its L band spectrum in 2020.

What does that mean for the industry?

With the approval of the deal, Ligado ensures the opportunity to continue to offer mobile satellite services. This could not only stabilize the company's business situation, but also lead to the development of modern technologies in the field of telecommunications. The Federal Government, which previously confiscated Ligado's licensed spectrum, will probably observe exactly how this situation will develop in the coming months.

Overall, this could actually be a turning point for Ligado and his stakeholders. It remains exciting to see how these developments can affect the market and to what extent Ligado can fully exploit its potential after restructuring. The company has shown obvious commitment to break new ground through innovation and partnerships.

More information about Ligados Current developments and the structural plan can be found in the reports of Law360 href = "https://ligado.com/press/ligado-networks-announces-compressive-restructuring-transaction/"> Ligado-Website .