LightSquared’s bankruptcy will reach a key milestone, despite the recent introduction of a hedge fund firm’s rival exit plan that threatened to disrupt the Chapter 11 case.
The Wall Street Journal reported Judge Shelley Chapman in U.S. Bankruptcy Court in New York said she will begin hearing evidence morning from LightSquared on why its restructuring plan should be confirmed by the court.
The Journal said further Solus Alternative Asset Management introduced its own proposal for the company’s future and said its plan to pump $2 billion into Philip Falcone ’s wireless venture is better than the one the company has presented, which involves little new money and puts the company in the hands of investors including Centerbridge Partners LP and Fortress Investment Group LLC.
To read the entire Journal article, click here.
Previously on abfjournal: , LightSquared Offers Restructuring Backers $200MM Breakup Fee, January 5, 2015