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

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(Credit: Reuters) Philip Falcone, chief executive officer and chief investment officer for Harbinger Capital Partners, participates in a panel discussion during the Skybridge Alternatives (SALT) Conference in Las Vegas, Nevada May 9, 2012.Philip Falcone
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.

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