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LightSquared files for Chapter 11
Posted: Tue, May 15, 2012, 7:43 AM ET (1143 GMT)
LightSquared, the company that ran into regulatory difficulties trying to establish a hybrid satellite-terrestrial broadband network in the US, filed for Chapter 11 bankruptcy protection on Monday. The company said the voluntary filing will give it "breathing room" to resolve the regulatory issues involved with establishing a high-speed wireless system. Earlier this year the FCC revoked its authorization to allow the company to operate a terrestrial system to augment its existing SkyTerra-1 satellite, citing tests that showed the LightSquared system caused interference with GPS signals. LightSquared sought to either reverse the decision or swap spectrum with the Defense Department, but elected to file for Chapter 11 after failing to win a deal with creditors by a Monday deadline.
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