LightSquared Declares Bankruptcy

Embattled LightSquared, whose controversial plan for a nationwide US broadband wireless network has foundered in recent months, filed Monday for protection in the US Bankruptcy Court for the Southern District of New York. The company, which proposed creating a hybrid satellite/wireless broadband technology, said the filing should give it “breathing room” as it continues to working on regulatory issues – a process which could take at least two years. The company has not been able to allay regulators’ concerns that its operation could interfere with existing GPS communications. LightSquared asserts interference problems are due to existing GPS devices improperly using available frequencies but says it is committed to finding a resolution with the US government and the GPS industry. However, regulators say there is no way to fix the problem. According to the Associated Press, LightSquared says it has invested more than $4 billion in the network and has assets and liabilities of more than $1 billion each. Among the largest creditors are Boeing Satellite Systems and Alcatel-Lucent, reportedly owed $7.5 million and $7.3 million, respectively. LightSquared CEO Sanjiv Ahuja resigned in February. (PhysOrg)(The Associated Press @ The Washington Post)(Bloomberg)(ComputingNow NewsFeed 15 February 2012)