LightSquared Will Include Dish’s Charlie Ergen in Restructuring Plans
LightSquared, the troubled would-be mobile broadband provider, said Friday it would begin including Dish Chairman Charlie Ergen in its restructuring plans.
Legal representatives for LightSquared said the company will hear out the three restructuring plans in play—one from an ad hoc group of lenders including Charlie Ergen’s L-Band Acquisition Corporation, one from MAST Capital and U.S. Bank and one from LightSquared itself and its owner, Harbinger Capital.
Harbinger’s Philip Falcone will present a plan at a hearing Tuesday, according to the Wall Street Journal.
There had been a lot of doubt whether Ergen would still be involved. Dish last year bid $2.2 billion for LightSquared’s L-Band spectrum assets but in January retracted that bid. LightSquared argued Dish’s bid withdrawal was a breach of contract, but the court ultimately sided with Dish. Additionally, Falcone and LightSquared had argued that Ergen had fraudulently acquired LightSquared’s debt through LBAC, stating that as a competitor to LightSquared, Ergen would have never been able to buy the debt had LightSquared known who was behind the corporation.
LightSquared had intended to deploy a nationwide LTE network on its L-Band spectrum holdings but was stopped by the FCC due to concerns over possible interference with GPS. Since filing for bankruptcy protection in 2012, Falcone and LightSquared have been working on alternative plans in order to gain FCC approval.