Sunday, 29 May 2016
Last updated 1 day ago
Apr 9 2012 | 10:20am ET
As Philip Falcone vowed to protect Harbinger Capital Partners’ wireless Internet venture, possibly with a bankruptcy filing, its creditors spoke to consider their next move.
LightSquared debtholders held a conference call last week to discuss the situation at the troubled company after Falcone said he planned to protect it “from creditors who are more interested in a quick flip.”
That statement was a shot at Carl Icahn, who is said to be pushing for a debt-for-equity swap that could see Falcone and Harbinger ousted as the powers behind LightSquared, which earlier this year learned that federal regulators would not approve its plans to deploy its system. Tests have shown that LightSquared’s system interferes with global positioning systems.
LightSquared’s creditors are mulling a declaration of default against the company.
Harbinger has invested some 60% of its assets in LightSquared—which cost the hedge fund 47% last year and almost 30% this year.