Inmarsat amends terms with LightSquared, to receive US$56.25 million

Inmarsat PLC (ISAT.LN), the mobile satellite communications group said Friday that it has reached agreement with LightSquared, the wireless broadband group, to amend certain terms of a cooperation agreement between the two companies, adding that LightSquared has made a payment to Inmarsat of $56.25 million.
MAIN FACTS:
-Payment is for completion payment for Phase 1 transition which had previously been outstanding.
-Under the terms of the amendment, Inmarsat has agreed to suspend Phase 2 of the Cooperation Agreement until 31 March, 2014.
-LightSquared may, at its option, elect to restart Phase 2 prior to this date.
-During the period of suspension LightSquared will not be required to make any Phase 2 payments to Inmarsat, including the formerly overdue payment of $29.6 million which was due March 31, 2012.
-On April 1, 2014, or an earlier date as elected by LightSquared, Phase 2 payments will restart from that date based on a restructured payment plan that will differ from the previous Phase 2 payments and be dependent on certain future outcomes with regard to deployment of the LightSquared network.
-A payment due on April 4, 2012 in relation to Phase 1.5 of the Cooperation Agreement has been renegotiated within the scope of the amended terms for Phase 2.
-As a result of the amendment announced Friday, LightSquared will no longer be in default in relation to any payments under the Cooperation Agreement.
-Notices of default issued by Inmarsat to LightSquared in relation to previous non-payment events will no longer have any effect.
-The amended terms of the Cooperation Agreement will allow LightSquared additional time to secure regulatory consents that may ultimately lead to the deployment of its ATC network in North America.
-The deployment of the LightSquared network remains a substantive revenue opportunity for Inmarsat, through Phase 2 of the Cooperation Agreement.
-Inmarrsat shares at 0901 GMT, up 8 pence, or 1.92{e1f18614b95d3cd6e4b3128e1cd15d99b042a60a5a19c19b7a8e07e7495efa10}, at 430 pence.