Ligado Networks Files for Chapter 11 Bankruptcy and Partners with AST SpaceMobile

Ligado Networks has initiated Chapter 11 bankruptcy restructuring and has formed a partnership with AST SpaceMobile to provide access to its mid-band spectrum.

AST SpaceMobile has revealed a long-term agreement to access up to 45 MHz of lower mid-band spectrum in the United States for direct-to-device satellite services. This deal, once finalized, will enhance AST SpaceMobile’s technology and its space-based network, which utilizes the largest communications arrays ever deployed in low Earth orbit. This will complement existing plans for low-band spectrum in the continental United States, known for its superior penetration and coverage, with access to the largest block of high-quality nationwide spectrum in the U.S.

Abel Avellan, Chairman and CEO of AST SpaceMobile, stated, “Gaining access to premium lower mid-band spectrum in the U.S. significantly boosts our planned space-based cellular broadband service. Together with our previously announced 850 MHz nationwide network plans, this access will enable us to achieve peak data transmission speeds of up to 120 Mbps, providing a true broadband experience directly from space to everyday smartphones.”

The binding Restructuring Support Agreement between Ligado Networks, holders of approximately 88% of Ligado’s funded debt, and AST SpaceMobile outlines that as part of Ligado’s restructuring, AST SpaceMobile will obtain long-term spectrum usage rights for over 80 years to up to 40 MHz of L-Band MSS spectrum in the U.S. and Canada, along with an additional 5 MHz in the 1670-1675 MHz Band in the U.S. This transaction is contingent upon the execution of definitive documentation, anticipated in the first half of 2025.

Upon finalizing the documentation, Ligado will receive approximately 4.7 million penny warrants convertible into AST SpaceMobile Class A shares, subject to a 12-month lock-up period. Upon closing the transaction, which requires satisfactory regulatory approvals and other conditions, Ligado will also receive around $550 million. To facilitate this, AST SpaceMobile has secured a $550 million institutional financing commitment for a planned special-purpose vehicle (SPV) in the form of a non-recourse senior-secured delayed-draw term loan facility, pending due diligence and customary closing conditions. Additionally, AST SpaceMobile will pay approximately $80 million annually for spectrum usage rights and grant Ligado long-term net revenue sharing rights. The transaction’s closing is contingent upon the successful completion of Ligado’s restructuring.

Tags

AST SpaceMobile, cellular broadband, Ligado Networks, mid-band spectrum, low Earth orbit

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This structured content highlights key aspects of the partnership and restructuring, making it relevant for business leaders in the film and television entertainment industry.

Person

Abel Avellan

Company Names

Ligado Networks, AST SpaceMobile

Titles

OneWeb service restored after 48-hour outage, Inmarsat to trial bonded network service on ‘K’ Line’s fleet, Intelsat announces terminal strategy to power multi-orbit satellite services, Space on a shoestring, SpaceX set to launch five commercial satellites for AST SpaceMobile, FCC grants approval for AST SpaceMobile’s launch of first commercial satellites

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