Lightsquared to push forward with satellite venture after declaring bankruptcy

Lightsquared, a 4G satellite network start-up, has said that despite its bankruptcy filing on Monday, it will continue to press the Federal Communications Commission to approve its wireless airwave licenses, the Washington Post reported Tuesday. 

The FCC rejected Lightsquared's network in February because it could possibly have disrupted signals used for global-positioning systems (GPS), Bloomberg reported in February. The company's billionaire backer Philip Falcone has accused the FCC several times of being influenced by special interest groups in blocking the decision, according to Bloomberg. 

The company filed for Chapter 11 bankruptcy yesterday after it failed to reach an agreement with its creditors on reorganizing its debt. Lightsquared's filing revealed several of the firm's high-profile unsecured creditors, including Boeing, which the company owes $7.5 million, and Alcatel Lucent, which is owed $7.3 million, Bloomberg reported. 

More from GlobalPost: LightSquared files for Chapter 11 bankruptcy protection

The budding wireless network has said that their bankruptcy filing “is intended to give LightSquared sufficient breathing room to continue working through the regulatory process that will allow us to build our 4G wireless network,” Lightsquared's Chief Financial Officer Marc Montagner said in a statement, Bloomberg reported.

“All of our efforts are focused on concluding this process in an efficient and successful manner,” Montagner added, according to eWeek.com. 

LightSquared is now directing its energies to keeping its smaller business as a wholesale provider of spectrum and satellite services afloat, according to the Post. The company has about 300,000 customers, which generate about $30 million in revenue. 

More from GlobalPost: FCC rejects LightSquared due to GPS interference (VIDEO)

Reaching agreements with the US regulatory agencies may take as long as two years, the company said in court papers, according to the Post.

“So long as there is a GPS interference issue with LightSquared L-band frequencies, the value of the company’s spectrum asset will likely remain diminished,” said Jeff Silva, analyst at Medley Global Advisors research, told the Post.