Harbinger, LightSquared Seek End To Dish Bid

Jan 6 2014 | 1:21pm ET

Harbinger Capital Management and its wireless Internet venture have asked a federal judge to throw out Dish Network's bid for the latter's assets, saying the offer wildly undervalues them.

Harbinger and LightSquared last week told U.S. Bankruptcy Judge Shelley Chapman that Dish's $2.2 billion offer for LightSquared's share of the electromagnetic spectrum is only a quarter of what that spectrum is worth under LightSquared's own reorganization plan. And they said that the bid's lowball nature is proven by Dish's own shareholders, who have bid up its stock price by 50% since Dish announced its offer.

"The debtors' secured creditors, with nothing to gain from the debtors' reorganization, continue to push for a sale liquidation to serve their parochial and largely illegitimate purposes," Harbinger's lawyers wrote. LightSquared's added, "There is no question how the market view such assets."

Chapman will hear arguments on the matter on Thursday.

Harbinger is fighting to maintain control of LightSquared, which it put into bankruptcy in 2012. LightSquared has been barred from building its planned 4G wireless network due to interference concerns with global positioning systems; LightSquared is attempting to swap its spectrum for spectrum without interference issues with the Federal Communications Commission.

Chapman is set to rule shortly on whether Dish's bid—as well as the proposed sale of a smaller part of LightSquared's spectrum to hedge fund Mast Capital Management and US Bancorp—can move forward. Later this month, Chapman will consider LightSquared's latest bankruptcy exit plan, back by Fortress Investment Group, Melody Capital Advisors, Harbinger and JPMorgan Chase. That deal requires the FCC's approval of LightSquared's spectrum-swap proposal.

Harbinger and LightSquared are also fighting to bar Dish Chairman Charles Ergen from collecting on some $1 billion in LightSquared debt that they say he fraudulently bought up in an effort to stymie its bankruptcy-exit plans.


In Depth

Why Ponzi Schemes Work: An In-Depth Look At The Allen Stanford Fraud

Dec 21 2014 | 10:30am ET

Texan Allen Stanford first appeared on the radars of financial regulators in 1997...

Lifestyle

Hedgie Funds US Squash Program

Dec 24 2014 | 8:46am ET

Squash, anyone?

Guest Contributor

EidoSearch’s Top Three Market Projections For 2015

Dec 23 2014 | 4:03am ET

It is that time of year again when prognosticators make their big market calls for...

 

Sponsored Content

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

December 2014 Cover

Futures 2014 person of the year

Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.

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.