Centerbridge Partners to take over LightSquared for $3.3 billion
American private equity firm Centerbridge Partners LP has reportedly reached a tentative deal to buy bankrupt telecommunications firm LightSquared Inc. for $3.3 billion.
Reuters, citing an earlier report by the Wall Street Journal, said Centerbridge has offered to pay about $3.3 billion for LightSquared and is willing to assume about $1.7 billion in various liabilities.
According to the report, LightSquared has been in bankruptcy since 2012 and is fighting to keep control of its valuable spectrum amid a takeover push by Dish Network Corp. Three creditor groups have proposed plans that contemplate an auction for the assets and Dish has already made a baseline bid of $2.2 billion.
A filing on LightSquared's bankruptcy docket showed that the company did not hold an auction for its assets scheduled for Wednesday. It also showed that LightSquared was pursuing an alternative transaction, Reuters said.
Fortess Investment Group LLC also planned to make an offer for the bankrupt company, but withdrew the bid on Wednesday. It now backs Centerbridge's plan and will most likely be a minority investor in the deal, the report said.