Bankruptcy Court Approves Terms of Ligado/AST L-Band Breakup
U.S. Bankruptcy Judge Thomas Horan of Delaware signed off on Ligado paying AST SpaceMobile up to $200 million in breakup fees if Ligado vacates or abridges the restructuring agreement between the satellite operators. Under Ligado's Chapter 11 restructuring agreement, AST…
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agreed to pay Ligado upfront and annually for access to Ligado's L-band spectrum, as well as for use of Ligado's satellites and ground station assets. AST would use substantially all of Ligado's SkyTerra-1 satellite capacity under the agreement. In his order Monday (docket 25-10006), Horan said the fees were "good, compelling, sufficient, and sound" and negotiated in good faith, and AST "is unwilling to remain obligated" to consummate the transaction without approval of the fee and reimbursements. According to the agreement, the fee is in recognition of AST "having expended considerable time and resources in connection with this Agreement and the negotiation thereof." Horan also approved AST being reimbursed for expenses incurred in crafting the agreement.