LightSquared Creditors Join Forces, Hire Bankruptcy Lawyer

Apr 25 2012 | 2:13pm ET

If Philip Falcone hoped for help from some, but not all, of LightSquared's creditors as he battles to save the wireless Internet venture and maintain control of it, he'll be disappointed.

Creditors of the Harbinger Capital Management-backed company, including its biggest, have joined forces and hired a prominent bankruptcy lawyer to handle their negotiations with LightSquared. Among those who have jointly hired White & Case's Thomas Lauria are Appaloosa Management, Fortress Investment Group, Capital Research and Management, and Carl Icahn, whom Falcone wined and dined in March, hoping to make an ally and not an adversary.

LightSquared has until April 30 to renegotiate its loans with those creditors to stave off a default. Reuters reports that it is unclear whether a deal can be reached; Falcone has said he would consider a voluntary bankruptcy filing in an effort to hold onto LightSquared, in which Harbinger has invested more than half of its dwindling assets.

LightSquared's—and Harbinger's—troubles began to mount last year, and in February the Federal Communications Commission said it would not approve LightSquared's planned network, due to concerns about interference with global positioning systems.

LightSquared and Falcone have pledged to fight to FCC decision. The company tripled its lobbying spend in the first quarter, to $1 million. Among the company's lobbyists are former Pennsylvania Gov. Ed Rendell and former House of Representatives Majority Leader Richard Gephardt, both Democrats.


In Depth

Q&A: Brevan Howard’s Charlotte Valeur Talks Strategy

Sep 18 2014 | 11:18am ET

Charlotte Valeur chairs the board of Brevan Howard Credit Catalysts, an LSE listed...

Lifestyle

Hedgies Rock Out For Children's Charity

Sep 15 2014 | 8:40am ET

It's that time of year again—when hedgies trade in their spreadsheets for guitars...

Guest Contributor

Volkered: How Financial Sector Reforms are Creating Opportunities for Hedge Funds

Sep 16 2014 | 11:28am ET

New regulations have dramatically curtailed proprietary trading activity in investment...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

September 2014 Cover

The London Whale: Rogue risk management

Credit default swaps brought down the London Whale and cost JPMorgan $6.2 billion. Here is how it happened.

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.