LightSquared confronted by near bankruptcy, adds more loans valued USD74 million
LightSquared Inc. would borrow USD74 million as additional funds from its lenders, reported Bloomberg. The company has not sought bankruptcy but would be after revealing that LightSquared no longer has enough funds. The report added saying that if the company failed to borrow money, LightSquared may also fail to reorganize its business.
Today, the wireless-spectrum loan agreement was approved by Judge Shelley Chapman in a bankruptcy court in Manhattan. The lenders in the deal included a Dish Network Corp controlled fund. Meanwhile, the agreement stipulated that Dish Chairman Charles Ergen would be the top priority on the company’s loan repayment scheme. The Bloomberg report said, that an order has been released favoring LightSquared to borrow a hefty loan valued USD80 million.
Today, a filing was made in court by LightSquared saying the company is facing “serious and irreparable harm.” The company also added in the filing that an unavailable loan and “any remaining possibility for confirmation of a Chapter 11 plan would be at severe risk.”
The papers also revealed the biggest lenders of the company including Capital Research & Management Co, Cyrus Capital Partners LP, Fortress Credit Corp and Ergen’s SP Special Opportunities LLC, reported Bloomberg.