Harbinger Seeks To Block Hedge Fund Linked To Dish Chief

Jul 9 2013 | 12:23pm ET

A hedge fund linked to a Dish Network founder has fraudulently bought up nearly $1 billion in a Harbinger Capital Management-backed wireless Internet venture's debt, Harbinger alleges.

The New York hedge fund last week accused Sound Point Capital of serving as a front for Dish Chairman Charlie Ergen, who covets LightSquared's share of the electromagnetic spectrum. Dish itself is barred from purchasing LightSquared debt.

In a bankruptcy court filing on Wednesday, Harbinger said that "Sound Point fraudulently entered LightSquared's capital structure" in a bid to block its reorganization and to "acquire the debtors' assets on the cheap"—all at the behest of Ergen, who is close to Sound Point founder Stephen Ketchum.

In its filing, Harbinger said that its fellow hedge fund is "not a legitimate creditor" and that it should not be compensated under his reorganization plan.

LightSquared has until July 15 to submit that plan; after that, any creditor can offer a plan of their own—including Sound Point. LightSquared's plan would see Jefferies Group raise $2.2 billion to repay creditors. But that plan is contingent on LightSquared's winning federal approval for a spectrum swap, since its current spectrum interferes with global positioning systems.

Ergen has offered $2 billion to buy LightSquared's spectrum.


In Depth

Kettera Q&A: The Advantages of Alternative Investment Platforms

Oct 28 2016 | 5:52pm ET

The past several years have seen a distinct push towards easier and cheaper access...

Lifestyle

Midtown's Plaza District Fades As Manhattan Office Landscape Shifts

Nov 22 2016 | 6:32pm ET

Lower leasing costs, more efficient office space and the hope of projecting an image...

Guest Contributor

Nowhere to Hide: Why the Future of Asset Management Depends on Innovation

Nov 15 2016 | 6:55pm ET

Information technology has reshaped the asset management industry’s periphery,...

 

From the current issue of

Chicago-based independent futures brokerage and clearing firm R.J. O’Brien & Associates (RJO) has hired industry veteran Daniel Staniford as Executive Director, responsible for the firm’s institutional business development in New York and London.

AVAILABLE NOW at BARNES & NOBLE

NEWSTAND LOCATOR