Sprint Nextel may refund about $74 million to LightSquared of the...
Sprint Nextel may refund about $74 million to LightSquared of the $310 million LightSquared has paid Sprint as part of a network sharing arrangement, the wireless carrier said Monday in an SEC filing (http://xrl.us/bmv9mu). Sprint can terminate the deal between…
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the two companies March 15, unless LightSquared receives approval from its lender to change the arrangement and defer Sprint’s ability to terminate the deal to June 25, the filing said. The companies agreed in December “that approximately $236 million of the total $310 million of advanced payments made by LightSquared” is “irrevocably and unconditionally paid and will not be subject to dispute or claim by LightSquared,” the filing said. Sprint said it also “maintains a second lien on certain of LightSquared’s assets, including spectrum assets.” LightSquared seems to have given up a chunk the money it has paid Sprint when it renegotiated the agreement in December, Tim Farrar, a mobile satellite service consultant, said in a blog post (http://xrl.us/bmv9so). “LightSquared definitively agreed to forfeit $236M of its advance payments to Sprint if they were unable to move forward which the agreement, which seems a huge sum of money when it appears Sprint had done basically nothing in terms of deployment apart from some initial network planning."