Spectrum Operator Ligado Files for Bankruptcy Amid Government Dispute

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. Ligado Networks is a satellite communications company that's been around for over two decades. They've traditionally provided mobile satellite services to government and enterprise customers across North America, focusing on critical communications. 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's Plan: Ligado aimed to expand its 5G network using L-Band spectrum, with a focus on the Internet of Things (IoT). They received an FCC permit in 2020, but this was met with strong opposition.
• Government Opposition: The U.S. Department of Defense (DoD) raised concerns that Ligado's network would interfere with military GPS receivers and other critical systems. This led to a series of legal battles and regulatory hurdles.
• Financial Strain: The government's opposition effectively blocked Ligado's expansion plans, preventing them from generating the anticipated revenue. This, coupled with existing debt, led to a severe financial strain.
• Bankruptcy Filing: In January 2025, Ligado filed for Chapter 11 bankruptcy in Delaware. This move allows them to restructure their debt and hopefully continue operations.
• Ongoing Lawsuit: Despite the bankruptcy filing, Ligado is continuing its lawsuit against the U.S. government, seeking compensation for what they claim is an unlawful taking of their licensed spectrum.