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

Steinbrugge: Top 10 Hedge Fund Industry Trends for 2017

Jan 3 2017 | 9:03pm ET

Each year, Agecroft Partners' Don Steinbrugge predicts the top hedge fund industry...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

DarcMatter: The Top Trends in Alternative Investments for 2017

Jan 13 2017 | 8:22pm ET

The $7 trillion alternative investments industry is poised for continued growth...

 

From the current issue of

The U.S. Commodity Futures Trading Commission (CFTC) ordered The Goldman Sachs Group Inc., and Goldman, Sachs & Co. to pay a $120 million penalty for attempted manipulation and false reporting of ISDAFIX Benchmark Rates, a global benchmark for interest rate products.