In a dramatic courtroom twist with orbit-shifting implications, a Delaware bankruptcy judge on Monday greenlit Ligado Networks’ $550 million partnership with AST SpaceMobile, signaling a breakthrough in the satellite firm’s audacious quest to slash nearly $8 billion in debt and launch a new era of space-based broadband connectivity.
The greenlight from U.S. Bankruptcy Judge Thomas M. Horan allows Ligado to formally enter into a sweeping commercial agreement with AST, paving the way for AST to use Ligado’s L-band spectrum in building out next-gen satellite internet infrastructure. As part of the deal, Ligado will receive 17.5% of future revenue generated from the spectrum-sharing arrangement.
“The Inmarsat agreement is integral to the resolution of the issues with AST,” Judge Horan said, declaring, “I’m going to grant the motion today.”
$550M Infusion Unlocks Reorganization Blueprint
The ruling caps weeks of legal wrangling and unlocks a $550 million payment from AST to Ligado, which will be used to resolve fierce opposition from Viasat Inc.’s unit, Inmarsat Global Ltd., a former bandwidth partner of Ligado. Inmarsat had previously alleged that the AST partnership unlawfully assigned rights under their existing cooperation agreement—an assertion now quelled by the hefty payout.
The transaction, unveiled in January alongside Ligado’s Chapter 11 filing, is described by the debtor as “a cornerstone” of its reorganization strategy, enabling low-earth orbit satellite integration with its mid-band L-band spectrum.
In addition to quarterly payments and penny warrants for 4.7 million AST shares, the deal positions Ligado to benefit directly from AST’s satellite broadband ambitions while navigating the wreckage of its overleveraged balance sheet.
