LightSquared Can Seek Creditor Vote on Four Plans
LightSquared will get court permission to have creditors vote on four competing plans to restructure the company.
US Bankruptcy Judge Shelley Chapman in Manhattan said she would approve all four disclosure statements, which describe the reorganization plans, once final versions are submitted. The plans come from the company, an ad-hoc group of lenders, Falcone’s Harbinger Capital Partners, and US Bank NA and Mast Capital Management. Creditors will vote by Dec. 5, according to court papers. “All parties have consensually agreed to resolve their formal and informal objections to each other’s disclosure statements,” Matthew S. Barr, a lawyer for LightSquared, told Chapman. LightSquared’s plan proposes a sale of almost all of its assets at auction while the company seeks approval from the Federal Communications Commission to use its airwaves. The lender group, which holds $1.4 billion of the $1.7 billion in debt of LightSquared’s LP unit, has a similar plan calling for a sale. A unit of Charlie Ergen’s Dish Network (DISH) would make a lead, or stalking-horse, bid of $2.2 billion.
LightSquared Can Seek Creditor Vote on Four Plans