Bloomberg reported that LightSquared’s plan to exit bankruptcy was thrown out by a judge who called it a “shell game” that was unfair to the company’s one-time suitor, Dish Network’s chairman and co-founder Charles Ergen.

Bloomberg said LightSquared had sought to put Ergen’s $1 billion debt claim behind those of other creditors as it reorganized with $2.5 billion in financing backed by Fortress Investment Group, JPMorgan Chase and Melody Capital Advisors, leaving controlling shareholder Philip Falcone with an equity stake in a new company.

To read the entire Bloomberg story, click here.

Previously on abfjournal: Dish Chairman Says LightSquared Plan Improperly Benefits Lenders, April 29, 2014