Centerbridge Reaches Tentative Deal for LightSquared

Private-equity firm Centerbridge Partners LP reached a tentative deal to buy LightSquared Inc. out of bankruptcy proceedings, said people familiar with the matter, potentially upstaging a bid by Dish Network to take over the wireless-telecommunications firm.

Centerbridge proposed paying roughly $3.3 billion for the wireless venture, backed by financier Philip Falcone, and assuming about $1.7 billion in various liabilities, the people said. The deal would be executed under a bankruptcy-reorganization plan, some of the people said. Centerbridge's negotiations with LightSquared were fluid, and there remained a chance discussions could fall apart, some of the people said.