Philip Falcone's Harbinger asks bankruptcy court to reject Dish's bid for LightSquared
New York hedge fund Harbinger Capital Partners, which controls bankrupt satellite company LightSquared Inc., has asked a judge to reject a takeover effort by Dish Network Corp.
According to Reuters, Harbinger said that Dish's $2.2 billion bid for a chunk of LightSquared's spectrum is a Trojan Horse. Harbinger is run by American investor Philip Falcone.
In a court filing on Thursday, Harbinger said that Dish's bid undervalues LightSquared's assets. A hearing is scheduled for next Thursday in the US Bankruptcy Court in Manhattan, the report said.
In a separate filing, LightSquared itself also called for the rejection of the Dish plan, calling it a short-sighted liquidation that benefits only its proponents, Reuters wrote.
The filings are the latest salvoes in a fierce battle for LightSquared's wireless spectrum. LightSquared is fending off the Dish bid as it pursues a standalone restructuring, the report said.
Under the said restructuring, LightSquared would receive $2.75 billion in fresh loans and at least $1.25 billion in equity investment from private equity firms Fortress Investment Group LLC, Melody Capital Advisors LLC as well as JPMorgan Chase & Co. and Harbinger, Reuters said.