Saturday, 30 July 2016
Last updated 12 hours ago
Jan 23 2012 | 2:06pm ET
As troubles mount for the wireless Internet company he backs, Harbinger Capital Partners' Philip Falcone may sell some of LightSquared's assets.
Falcone has spoken with possible buyers about some of LightSquared's spectrum leases, Reuters reports, as he mulls ways to raise money for a company into which he has poured more than half of Harbinger's assets. He may also approach some of LightSquared's customers, including its crucial customer, Sprint Nextel, about renegotiating their contracts.
LightSquared has been hit with a raft of bad news lately as it awaits final approval of its plans. Earlier this month, a government advisory agency recommended an end to testing of its network, saying there was no readily available solution to deal with global positioning system interference issues.
The company is battling that recommendation, and says it has enough cash to keep operating for several quarters. But an internal report last year indicated that the company may be running out of money.
According to Reuters, Falcone could be seeking to raise cash in advance of a possible bankruptcy filing, which could pit him against Carl Icahn, who has been buying up LightSquared's distressed debt. Reuters' sources say, however, that there is no indication that LightSquared is actively considering a bankruptcy filing.