Ligado sues Inmarsat following bankruptcy ruling

 Satellite operator Ligado Networks has sued its contract partner Inmarsat shortly after filing for Chapter 11 bankruptcy. In its lawsuit, Ligado claims Inmarsat failed to make the required upgrades to its satellite network while still demanding payments from Ligado, at a time when Ligado has been in a dispute with the US government which had prevented it from monetizing the leased spectrum. 

“Over a 17-year period, Ligado paid Inmarsat over $1.7 billion in fees, while Inmarsat willfully avoided performing its contractual duties to upgrade its own satellite terminals,” said Ligado CEO Doug Smith in a statement.

“In fact, due to its choice to delay upgrading its terminals, Inmarsat is likely still years away from completing the upgrades required under the agreement. After a prolonged effort to reach a path forward, Ligado is compelled to seek legal recourse to make Inmarsat perform its duties and pay damages for the harm it has caused.”

Ligado blames the US government for taking its licensed spectrum unlawfully without compensation after a year-long effort to secure a comprehensive resolution with satellite communications company Viasat to restructure Ligado’s significant payment obligations to Inmarsat. Viasat acquired Inmarsat in 2023.