VENTURE CAPITAL POST

Pay-TV network operator Dish Network Corp. is aborting its bid for bankrupt telecom firm LightSquared Inc. Dish Network initially offered to buy LightSquared and its wireless spectrum for $2.2 billion.

Harbinger Capital Partners, controlled by American investor Philip Falcone, has asked the US Bankruptcy Court in Manhattan to reject Dish Network Corp.'s $2.2 billion takeover bid for bankrupt satellite firm LightSquared Inc.

The US Department of Justice objected to four restructuring plans put forth by bankrupt LightSquared and its creditors. The objection will be discussed at a bankruptcy court hearing on December 10 in Manhattan.

After its creditors opposing the original auction process for the assets of LightSquared Inc, the new plan was approved by the bankruptcy court.

The proposed auction by the bankrupt LightSquared has been sought annulled by a group of lenders.

In documents filed by Dish Network's lawyers, they reiterate the five year ban agreed to by Falcone as well as the lack of evidence as cogent and sufficient reasons for the dismissal of the case filed by Harbinger Capital Partners.

Billionaire Philip Falcone agreed to a five year ban in the securities industry and admits wrongdoing in the allegations filed by the US Securities and Exchange Commission.