Philip Falcone's Harbinger asks bankruptcy court to reject Dish's bid for LightSquared

January 3
10:45 PM 2014

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.

© 2022 VCPOST, All rights reserved. Do not reproduce without permission.


Join the Conversation

Subscribe to VCpost newsletter

Sign up for our Deals of the Day newsletter.
We will not spam you!

Real Time Analytics