29th Aug 2014 09:31
LONDON (Alliance News) - Inmarsat PLC Friday said it has received a quarterly payment from US partner LightSquared due under the terms of the agreement between the two, having said in July that the payment had yet to be made.
The FTSE 250-listed satellite communications company said the Phase 2 payment of USD9.1 million was received within the 60-day contractual cure period. After LightSquared failed to make the payment on July 1, a notice of default was triggered under the terms of the contract between the two companies.
Inmarsat said further payments from LightSquared under the deal between the pair remain subject to uncertainty, as the US firm has yet to complete a reorganisation process following its collapse into bankruptcy in May 2012. The failure of the Virginia-based company to complete its reorganisation process means LightSquared is unable to fund further operations, including its payments to Inmarsat.
Inmarsat said the revenue generation for its mobile satellite services and Inmarsat Solutions arms remains unaffected by the LightSquared deal.
Inmarsat shares were down 0.1% to 701.67 pence on Friday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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