Falcone Rules Out Bankruptcy In Wake Of FCC Decision

Feb 16 2012 | 3:16pm ET

Harbinger Capital Partners founder Philip Falcone says his wireless broadband startup LightSquared won’t be filing for bankruptcy, despite bad news from U.S. regulators.

A day after the Federal Communications Commission announced it would revoke its permission for LightSquared’s land-based network, Falcone told Reuters by email on Wednesday that bankruptcy was “clearly not on our table.”

Falcone says he has a plan for dealing with the threatened revocation, although he declined to reveal any details to the news agency.

The regulator’s decision is based on a series of government tests which found that LightSquared's network would interfere with global positioning systems. The decision is bad news for Harbinger which has over half its remaining $4 billion in assets invested in the broadband venture.

"The commission clearly stated from the outset that harmful interference to GPS would not be permitted," FCC spokeswoman Tammy Sun said. "The commission will not lift the prohibition on LightSquared."

LightSquared has called the validity of the negative tests into question and said that interference issues could be resolved.

Reuters says many telecoms analysts doubt Harbinger will be able to raise more money or become profitable with just the satellite-based portion of its network.

There’s still one bright spot for Falcone, however: LightSquared's main business partner Sprint Nextel still plans to give the company until mid-March to address its issues with the FCC.


In Depth

Why Ponzi Schemes Work: An In-Depth Look At The Allen Stanford Fraud

Dec 21 2014 | 10:30am ET

Texan Allen Stanford first appeared on the radars of financial regulators in 1997...

Lifestyle

Hedgie Funds US Squash Program

Dec 24 2014 | 8:46am ET

Squash, anyone?

Guest Contributor

EidoSearch’s Top Three Market Projections For 2015

Dec 23 2014 | 4:03am ET

It is that time of year again when prognosticators make their big market calls for...

 

Sponsored Content

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

December 2014 Cover

Futures 2014 person of the year

Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.