Judge Warns Harbinger Not To Keep Her Informed Via Newspaper

Jun 4 2014 | 9:56am ET

If Harbinger Capital Partners does wind up suing the Federal Communications Commission for failing to approve its wireless internet venture, it might want to give the judge overseeing its bankruptcy a heads up.

U.S. Bankruptcy Judge Shelley Chapman called an emergency hearing in the case after reading last week that Harbinger had sent a letter to the FCC demanding “immediate, positive action” on LightSquared’s proposed network, which the agency has denied due to concerns about interference with global positioning systems. The letter is believed to be a prelude to a lawsuit should the FCC fail to approve LightSquared’s plans.

Accordng to Debtwire, Chapman made clear she doesn’t like learning about such things “in the New York Post or The Wall Street Journal” before closing the hearing to the public.

Chapman last week ordered LightSquared and its creditors, led by Dish Network Chairman Charles Ergen, into mediation after the two sides failed to reach a compromise. The judge rejected LightSquared’s restructuring proposal, backed by Fortress Investment Group, as unfair to Ergen. Chapman separately ordered some of Ergen’s $1 billion in LightSquared bonds to be subordinated, finding that he ignored loan covenants barring competitors from LightSquared’s capital structure.

The mediation is to be overseen by Chapman’s colleague, U.S. Bankruptcy Judge Robert Drain.


In Depth

Q&A: Star Mountain's Brett Hickey On Investing In 'The Growth Engine Of America'

Sep 22 2017 | 5:06pm ET

Lower middle-market companies form the economic fabric of the nation, but they can...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Don’t Overlook These 6 Hybrid Cloud Concerns

Sep 14 2017 | 6:27pm ET

Cloud-based technology solutions have made tremendous inroads into the alternative...

 

From the current issue of

Business Insider has been reporting on the unusual trading activity of a mystery trader who placed a profitable short equity bet to the tune of $21 million on the Aug. 10 move in the CBOE Volatility Index (VIX).