Nothing Unfair About Restructuring Plan, LightSquared Says

Apr 15 2014 | 12:21pm ET

Harbinger Capital Partners' wireless internet venture continued to insist it had no obligation to negotiate with its largest creditor, since, it says, he had no business being a creditor at all.

LightSquared, seeking approval of a $2.65 billion bankruptcy exit plan, wants to pay most creditors in cash. But Dish Network founder Charles Ergen would get only third-lien notes payable over seven years, treatment he argues is unfar.

LightSquared and Harbinger founder Philip Falcone have shot back that Ergen illegally bought the nearly $1 billion in debt, in contravention of covenants barring competitors from owning it. Backed by Ergen, Dish had sought to buy LightSquared out of bankruptcy, a bid it later dropped.

"There is simply no doubt that [Ergen] is receiving the indubitable equivalent of its claim," LightSquared wrote in a court filing. Ergen's response is expected later this month.

LightSquared has said its reorganization plan, backed by Fortress Investment Group, will fail if Ergen's claims are not disallowed. Last week, it won the right to borrow another $74 million from its lenders—including a hedge fund controlled by Ergen—to stave off collapse as it waits for approval of its plans.


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

Top 5 Predicted Outcomes Of CalPERS' Hedge Fund Divestment

Sep 22 2014 | 8:35am ET

CalPERS’ announcement to divest of hedge funds has created a significant buzz...

 

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 London Whale: Rogue risk management

Credit default swaps brought down the London Whale and cost JPMorgan $6.2 billion. Here is how it happened.

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.