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USA's LightSquared Proposes New Plan to Exit Bankruptcy

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Note -- this news article is more than a year old.

Bankrupt US mobile network, LightSquared has proposed a new plan that could see the company leave bankruptcy as a stand alone company.

The company was forced into bankruptcy after the telecoms regulator bowed to pressure from GPS receiver manufacturers who claimed the LTE network would interfere with their equipment.

Since then the firm has fought off a hostile takeover bid from Dish Network and has been seeking a way of leaving bankruptcy protection. The company has until the middle of April to secure a deal, before its cash reserves are depleted.

The new plans would see debt holders supply $1.65 billion in debtor-in-possession financing plus $1 billion in exit financing.

"The plan has received overwhelming consensus and support from a substantial portion of LightSquared's significant stakeholders," according to the disclosure statement.

A hearing with the bankruptcy court has been scheduled for next month to discuss the plan.

Dish Network's Chairman, Charles Ergen bought up a sizeable chunk of company debt to secure control of the company and may still need to approve any future deal.

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Tags: lightsquared  USA