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Bankrupt LightSquared gets new bidding process approved by court

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September 30
10:58 PM 2013

The bankrupt wireless spectrum company of Philip Falcone, LightSquared Inc, earlier announced the resolution of a dispute with its lenders on the bidding procedure which the company claimed may have blocked an offer for its assets. The said offer amounts to nearly USD2 billion.

The auction procedures would be filed with the court of US Judge Shelley Chapman who has jurisdiction over the bankruptcy case, according to LightSquared Attorney Matthew S. Barr. The process would entail the services of an independent committee to oversee the auction.

LightSquared's lenders, who own USD1.4 billion of the firm's USD1.7 total debt, objected to a plan that would have provided Harbinger Capital Partners, another Falcone firm, too much discretion in choosing the winning bid offer. According to the lenders, Harbinger was blocking any kind of sale of LightSquared's assets.

At today's hearing, Judge Chapman said, "This playing field is as level as it gets." She added that the plan would be sending a 'message to the marketplance' as potential builders may prevail over the auction. The company is seeking the sale of its wireless-spectrum assets under the jurisdiction of the court because of the bankruptcy protection. There was an earlier offer worth USD2.22 billion from Dish Network Corp.

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