By Joseph Checkler and Tom Corrigan
A judge on Thursday approved the restructuring plan of
LightSquared, an elusive milestone for Philip Falcone's ambitious
wireless venture that went bankrupt nearly three years ago.
U.S. Bankruptcy Judge Shelley C. Chapman said the latest version
of the proposal, which pays off Dish Network's Charlie Ergen, the
venture's top lender, in cash and puts LightSquared in the hands of
investors including Fortress Investment Group LLC and Centerbridge
Partners, was fair to creditors.
When the plan becomes effective. LightSquared will be owned by
investors including Centerbridge, Fortress and a unit of J.P.
Morgan Chase & Co. Mr. Falcone and his Harbinger Capital
Partners will keep more than 44% of the equity, although Harbinger
won't have a say in day-to-day operations.
Solus Alternative Asset Management LP and Cerberus Capital
Management LP, which had presented a rival restructuring plan,
dropped their opposition to the LightSquared plan after
LightSquared agreed to buy back their preferred stock and debt.
Resolving the objections will cost LightSquared about $15 million
fees and expenses, a lawyer for LightSquared said at the
hearing.
LightSquared filed for Chapter 11 in May 2012, shortly after
federal regulators refused to clear LightSquared's plans to launch
its wireless network. Those regulators heeded warnings from the GPS
industry that the network could interfere with GPS.
Write to Joseph Checkler at joseph.checkler@wsj.com
Access Investor Kit for DISH Network Corp.
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=US25470M1099
Access Investor Kit for Fortress Investment Group LLC
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=US34958B1061
Subscribe to WSJ: http://online.wsj.com?mod=djnwires