Dish Exits LightSquared Fight

Jan 9 2014 | 2:06pm ET

Dish Network has dropped its $2.2 billion offer for Harbinger Capital Management's wireless Internet venture, handing an apparent—and once almost inconceivable—victory to Harbinger founder Philip Falcone.

A lawyer for the LightSquared committee overseeing the potential auction of the bankrupt company's assets told a court today that Dish had withdrawn its bid. The move comes a month after LightSquared canceled an auction—at which Dish was to be the lead bidder—following a richer restructuring proposal led by Centerbridge Partners.

Centerbridge quickly dropped out of that offer, but its move bought LightSquared and Harbinger time to file a competing proposal to that offered by Dish.

Dish's offer has also been controversial. The company's chairman, Charles Ergen, had bought up more than half of LightSquared's debt; LightSquared and Harbinger accused Ergen both of fraudulently acquiring the debt and then using it to block its bankruptcy exit proposals.

Even in death, the bid remains controversial: LightSquared's lenders, who strongly backed the Dish offer, on Tuesday accused Dish of breaching its contract by refusing to go through with the deal. A lawyer for Dish and Ergen said that she didn't think Dish had done so—but Dish had not withdrawn its bid at the time.

Dish's move appears to imperil U.S. Bankruptcy Judge Shelley Chapman's plans to consider a reorganization plan based on Dish's bid this week. Chapman will consider Harbinger's plan later this month.

In Depth

Related-Company Fees: Normal Industry Practice or Conflicted Compensation?

Nov 11 2015 | 4:23pm ET

Regulatory agencies as well as investors are increasingly exploring whether certain...


Ferrari Roars in Wall Street Debut

Oct 21 2015 | 4:28pm ET

Shares of supercar maker Ferrari jumped as much as 15 percent to a high of nearly...

Guest Contributor

Private Debt - What is the Opportunity?

Nov 11 2015 | 3:28pm ET

In this contributed article, Rob Allard, founding partner of Firebreak Capital...


Editor's Note

    Oct 21 2015 | 10:41am ET

    One of the most unique charity benefits in the hedge fund industry, A Leg To Stand On's (ALTSO's) Hedge Fund Rocktoberfest - NYC, raised nearly $500,000 last Thursday thanks to the generous support of major sponsors and nearly 1,400 attendees from the Tri-State finance, business and hedge fund communities. Read more…