Photo: Ligado.

Ligado Networks has filed for Chapter 11 restructuring, and has signed a deal with AST SpaceMobile to allow the company to use Ligado’s mid-band spectrum. 

Ligado announced the bankruptcy filing on Jan. 6, saying in a statement it incurred “large operational losses” from the U.S. government’s “unlawful taking” of its spectrum rights without compensation. In 2023, Ligado sued the U.S. government, alleging the Department of Defense, Department of Commerce, Congress prevented Ligado from using spectrum licensed by the FCC. 

Ligado also has debt to Inmarsat, now part of Viasat. Ligado said it has gone through a years-long effort to restructure its payment obligations with Viasat. 

In total, Ligado said it has $8.6 billion in debt and expects the Chapter 11 process will reduce its debt to approximately $1.2 billion.

Ligado said it will continue to provide mobile satellite services (MSS) to its existing customers. The company plans to continue advancing its mobile satellite plans and L-band ecosystem for its spectrum assets. 

The company also plans to continue its lawsuit against the U.S. government during the restructuring process. Ligado reported that on Nov. 18, 2024, the U.S. Court of Federal Claims denied in part the government’s motion to dismiss Ligado’s claims.

“Ligado will continue to vigorously prosecute its litigation against the U.S. government to enforce its constitutional right to just compensation for the government’s unlawful taking of Ligado’s licensed L-Band spectrum,” said Ligado President and CEO Doug Smith. “The DOD’s actions constitute the largest uncompensated taking of private property in the U.S. in modern times and have caused Ligado catastrophic financial distress.”

Spectrum Deal With AST SpaceMobile 

The commercial agreement with AST SpaceMobile is a significant part of the restructuring and Ligado’s financial plan moving forward. According to AST SpaceMobile, Ligado will receive AST SpaceMobile warrants and a $550 million payment, then approximately $80 million annually for spectrum usage rights. 

This gives AST SpaceMobile long-term spectrum usage rights for more than 80 years for up to 40 MHz of Ligado’s L-band mobile satellite spectrum (MSS) spectrum in the United States and Canada, plus access to an additional 5 MHz in the 1670-1675 MHz Band in the United States. 

“Adding premium lower mid-band spectrum access in the United States to the AST SpaceMobile network gives us long-term access to a large block of a scarce resource, significantly enhancing our planned space-based cellular broadband offering,” said Abel Avellan, Chairman and CEO at AST SpaceMobile. 

The deal includes revenue sharing rights for Ligado in AST SpaceMobile’s direct-to-device business in the U.S. and Canada.

“The hosting of Ligado’s L-band spectrum on AST SpaceMobile’s advanced low earth satellite network is a sea change with the potential to materially accelerate and expand consumers’ access to space-based broadband,” Ligado said in a statement.