LightSquared Mulls Spectrum Sale In New Bankruptcy Plan

Sep 3 2013 | 12:08pm ET

LightSquared, the wireless Internet venture owned by Harbinger Capital Management, and its creditors have proposed competing sale plans for the bankrupt company's assets.

On Friday, LightSquared filed a proposed reorganization that would see it seek to sell its share of the electromagnetic spectrum. A day earlier, LightSquared's creditors, including a hedge fund owned by Dish Network Chairman Charles Ergen, suggested an auction—run by anybody but LightSquared—with Ergen's $2.2 billion bid as the lead offer.

LightSquared said its proposal was the "best, immediate option to use this spectrum for mobile broadband," a use that has been barred by the Federal Communications Commission, which fears interference with global-positioning systems. Reston, Va.-based LightSquared said it would continue to seek the FCC's permission to use the spectrum for wireless Internet or to swap for spectrum that would not cause interference.

The company's creditors, in their own plan, called into question LightSquared's "ability to run a fair and competitive auction," noting that Harbinger's fraud lawsuit against Ergen makes clear it hopes to keep control of the company. Harbinger alleges that Ergen fraudulently skirted rules barring LightSquared competitors—like Dish—from buying its debt.

The creditors also warned that, with the federal government planning to release more spectrum for use, the value of LightSquared's will only fall.


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

Griffin Donates $1M To Rauner's Illinois Gov. Campaign

Sep 22 2014 | 9:29am ET

Hedge fund billionaire Kenneth Griffin definitely has a dog in this fight. The Citadel...

Guest Contributor

Appraisal Ratio Key To Evaluating Hedge Funds And Other New Investments

Sep 29 2014 | 3:07pm ET

As a former finance professor Peter Hecht experiences heartburn every time he hears...

 

Videos

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 profitable power of confluence

The trading world is inundated with strategies and techniques. Here’s one way traders can get a handle on information overload.

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.