LightSquared Debt Holders Object to Restructuring Plans
Published on: 9th Sep 2012
Note -- this news article is more than a year old.
The debt holders of bankrupt USA based LTE network, LightSquared have objected to plans by its lead backer, Philip A. Falcone to revive the company, saying his plans are too risky.
The debt holders own around USD1.1 billion of the company's outstanding USD1.7 billion of debt.
The company filed for voluntary bankruptcy protection after the US regulators blocked its network due to concerns about interference with GPS receivers. The company is now seeking an extension on the bankruptcy proceedings as it says that it needs more time to seek approvals from its creditors.
"Having nothing to lose, Mr. Falcone wants to pursue a high-risk, high-return strategy" of trying to get regulators to reverse their stance on LightSquared's technology the debt holders told the bankruptcy court.
They are asking that either the company pursue a process more likley to see a repayment of the debt through issues such as asset disposals or sales of its radio spectrum. Alternatively, Philip Falcone should put more of his own money into the company.
The company is also seeking court approval to pay bonuses to its management as they work though the bankruptcy process.