Wireless venture LightSquared reportedly concluded three years of litigation with creditors, securing U.S. Bankruptcy Court approval of a plan to end its Chapter 11 case and repay in full its largest creditor.
LightSquared’s bankruptcy will reportedly 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.
LightSquared is reportedly seeking to pay a $200 million breakup fee to the backers of its restructuring, including Fortress Investment Group, in case the mobile satellite company’s Chapter 11 exit doesn’t pan out as planned.
Bloomberg reported that Lightsquared has come to a tentative agreement on its plan of reorganization, granting majority ownership to JPMorgan, Fortress Investment Group and Cerberus Capital Management.
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 Charles Ergen.
Bloomberg reported that Dish Network Chairman Charles Ergen claims LightSquared’s reorganization plan will improperly benefit lenders, including JPMorgan Chase.
Bloomberg reported Philip Falcone’s LightSquared persuaded a judge to let it go forward with a bankruptcy plan that will punish Dish Network Chairman Charles Ergen if he doesn’t go along.
Bloomberg reported LightSquared, whose owner Philip Falcone fought a takeover bid from Dish Network (DISH) chairman, Charles Ergen, proposed a new reorganization plan that could allow the wireless broadband company to exit bankruptcy as a stand-alone.
Reuters reported a bankruptcy judge approved a $33 million loan from a group that includes Charles Ergen, Dish Network Corp chairman, to keep wireless venture LightSquared afloat as it tries to hash out a bankruptcy exit plan.
The Wall Street Journal reported LightSquared’s lawyers said they’ll work with holders of the company’s bank debt, including Dish Network’s chairman on a restructuring plan.