LightSquared Creditors Talk As Falcone Mulls Bankruptcy

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.


In Depth

GSAM's Papagiannis: Liquid Alternatives For The Long Run

Apr 21 2017 | 8:44pm ET

Interest in liquid alternatives cooled a bit last year amid a broad shift in investor...

Lifestyle

Aston Martin Returns To Debt Market As DB11 Drives Turnaround

Mar 31 2017 | 5:21pm ET

James Bond’s preferred carmaker is returning to the public debt markets for the...

Guest Contributor

Debunking Conventional Investment Wisdom (Part II)

Apr 17 2017 | 5:56pm ET

The alternative investment industry is currently replete with buzzwords around data...

 

From the current issue of