American private equity firm Centerbridge Partners LP backed out of its deal to buy LightSquared Inc. Wall Street Journal earlier reported that Centerbridge cited uncertainty over when federal regulators would clear the way for LightSquared to build out its wireless network.

According to Reuters, Centerbridge had offered to pay about $3.3 billion for LightSquared, which has been in bankruptcy since 2012. LightSquared is also fighting to keep control of its valuable spectrum amid a takeover push by Dish Network Corp.

Centerbridge was worried that it would have to spend huge amounts of cash while waiting for regulatory approval for LightSquared's proposal. LightSquared sought the approval of US regulators for a spectrum swap that would allow it to build out its network, WSJ said. 

A LightSquared lawyer told WSJ that Centerbridge abandoned the deal due to economic and non-economic reasons. LightSquared still hoped to move ahead with its bankruptcy reorganization plan despite the private equity firm backing out, the report said.