LightSquared

Third-lien notes payable over seven years by a company that just had to borrow $74 million from people (including Charlie Ergen) to stay afloat through June 15 is more than fair for a man (Charlie Ergen) who created the whole mess in the first place, according to said company. Read more »

Philip Falcone’s LightSquared Inc. will probably be able to borrow $1 billion to finance its exit from bankruptcy as a standalone company, Credit Suisse Securities LLC said in a letter made public Friday. The Credit Suisse Group AG (CSGN) unit said it was confident it could arrange the proposed bankruptcy-exit loan as long as LightSquared, a wireless broadband provider, met conditions including obtaining the “cooperation of all parties-at-interest” in the reorganization and “all required regulatory approvals.” Philip Falcone’s LightSquared Inc. will probably be able to borrow $1 billion to finance its exit from bankruptcy as a standalone company, Credit Suisse Securities LLC said. [Bloomberg]

The former hedge fund manager and aspiring 4G magnate’s technically-inept lawyers suggest that his arch-enemy may have been stretching the truth a bit about when he began to consider investing his daughter’s trust fund in LightSquared bonds. Read more »

  • 08 Oct 2013 at 1:45 PM

Two Can Play At This Game, Charlie Ergen

A couple of weeks ago, some LightSquared creditors who may or may not be Dish Network chairman Charlie Ergen but who definitely want Charlie Ergen to buy LightSquared got someone who doesn’t like Charlie Ergen kicked off the committee that will consider Charlie Ergen’s bid. Well, some people who don’t like Charlie Ergen but own a few shares in his company now want a couple of people who do like Charlie Ergen thrown off of Dish’s committee handling the bid for LightSquared, for the same reason that Charlie Ergen or Charlie Ergen’s allies wanted the person who doesn’t like Charlie Ergen off the LightSquared committee. And none of them are Phil Falcone! Got it? Read more »

The hedge funds that LightSquared owes money to, notably Dish Network Chairman Charlie Ergen’s personal hedge fund, are quite eager to force LightSquared to accept Dish’s bid for its assets. This would have the salutary effect of (a) ensuring that they all make a huge profit on debt they paid pennies for, (b) humiliating and possibly bankrupting Phil Falcone, and (c) giving Dish the extra spectrum it wants (while also making Charlie Ergen even richer).

So imagine their surprise when LightSquared named one of the many people who have had rough dealings with Charlie Ergen in the past to the special committee that will handle the auction of the aforementioned assets. Well, they have told a bankruptcy judge, this kind of stacking the deck simply won’t do. It might keep Charlie Ergen’s careful stacking of the deck from working. Read more »

An “awkward position,” maybe. But that doesn’t mean he shouldn’t reap all of the rewards of his maybe-shady-but-probably-not-illegal move to buy half of LightSquared’s debt, and any (either of the, really) independent directors who disagree can hit the road. Read more »

As some of you may recall, back in August, when Phil Falcone was on a suing people/things binge, one of the guys he decided to go after was Dish Network Chairman Charles Ergen, who Falcone’s Harbinger claimed had fraudulently acquired in LightSquared. Today Ergen asked a judge to throw out the lawsuit, in part because, according to Ergen, no fraudulent activity ever occurred (which seems like a pretty good reason). But also, if Ergen could add one thing? He finds it pretty rich that a man who just recently apologized for using investor money to pay his own personal taxes would be so quick to throw stones from inside the glass house that fraud built. Read more »