Sunday, 19 April 2015
Last updated 5 hours ago
Sep 18 2012 | 12:59pm ET
Creditors of Harbinger Capital Partners' wireless Internet venture have asked a judge for the right to sue the hedge fund on behalf of the bankrupt company it controls.
Lenders, including Mast Capital Partners and Fortress Investment Group, have asked a Manhattan federal bankruptcy judge to act on behalf of LightSquared, because "the debtors are completely conflicted, and will not sue their controlling insider," Harbinger. And the creditors want to go after a $263.8 million loan the hedge fund made to LightSquared last summer.
The creditors, who control $1.1 billion of a $1.7 billion loan, allege that the $263.8 million was "incorrectly styled" as a loan and was in fact an "equity infusion" made to an insolvent LightSquared. They complain that the loan was "preferential" to Harbinger, placing its claims ahead of their older claims.
LightSquared's creditors say they are facing a Sept. 28 deadline to file a lawsuit against Harbinger on behalf of LightSquared, of which Harbinger owns 96%. The hedge fund put the company into bankruptcy earlier this year and has been fighting debtors' efforts to subpoena its records. The bankruptcy filing ensured that Harbinger maintained control over LightSquared, which has run into regulatory trouble, after it failed to strike a new deal with lenders.
Creditors have said their investigation turned up a number of "red flags" surrounding the Harbinger loan.
Mar 20 2015 | 12:45pm ET
StreetWise Partners, a non-profit organization that works with low-income individuals to help them overcome employment barriers, raised over $275,000 at the 2015 Raising the Ante Charity Poker Tournament and Casino Event last Wednesday evening at Capitale. Here are some photos from the event. Read more…