LightSquared

Harbinger-Backed LightSquared Plans To Not Cause ‘Devastating’ GPS Interference Moving Forward

By

Not letting Phil Falcone’s LightSquared proceed using its authorized spectrum “would doom an innovative American start-up company,” LightSquared said in its FCC filing. “The commercial GPS device industry wants the commission to shut down an unprecedented effort to establish a nationwide wireless broadband network.” LightSquared’s plan to limit its initial operation to its airwaves furthest from GPS uses would pose no risk to more than 99 percent of GPS users, and the company is offering to underwrite “a workable solution for the small number” of GPS devices “that may be at risk,” the company said in its filing…“This issue will be resolved by good data, smart engineers and good-faith problem-solving dialog,” Sanjiv Ahuja, the company’s chief executive officer, said in a news release. [Bloomberg]

Related: Harbinger Capital Will Pay Redemptions…In Illiquid LightSquared Equity

Phil Falcone’s Summer Is Looking Up

By

The 6 months or so have not been the best of times for hedge fund manager Phil Falcone. The returns in Harbinger’s flagship have not exactly mimicked the highs of 2007, investors got their panties in a bunch when he borrowed $113 million from one of his funds (where redemptions had been frozen) in order to pay personal taxes, he had to put up his art collection as collateral to borrow even more cash, the deal that could make or break him has run into some bumps that include fucking things up in outer space and the same ingrates who gave him shit for locking up their money are getting all pissy because instead of giving them back actual cash, they’re getting illiquid shares of LightSquared. What’s more, construction on his Hampton’s home is still months and months away from being completed and it was looking like Phil was going to have to break the bad news to the Wilbur, the Falcone’s singing and dancing pig, that there’d be no getting wild at the Pink Elephant this summer. Already Wilbur had been dropping some not so subtle hints that most pigs of his talent wouldn’t have stuck around this long and that he had “options,” so it was a conversation Phil was not looking forward to. And then, out of nowhere, luck came a knocking on Phil’s front door. Continue reading »

  • 20 Jun 2011 at 2:44 PM

Harbinger Capital-Backed LightSquared Says It Has Come Up With A Solution That Might Work Re: “Devastating Interference”

By

Several weeks ago, it was reported that government tests indicated LightSquared, Phil Falcone’s big bet in the sky, would cause “devastating interference” to all GPS devices in range. Then last Thursday, the National Space-Based Positioning, Navigation and Timing Systems Engineering Forum said the venture would “degrade global-positioning system navigation devices that are nearby and as far away as outer space.” LightSquared, shares of which Harbinger Capital investors will receive should they have requested their cash back from the fund, says do not worry, though, because they’ve got a plan. Continue reading »

  • 10 Jun 2011 at 12:31 PM

Phil Falcone’s Lightsquared May Have Some Kinks To Work Out

By

Nothing huge but the network might “cause devastating interference” to GPS devices. Continue reading »

  • 08 Jun 2011 at 3:20 PM

What ‘Portion’ Of Their $1 Billion In Redemptions Will Harbinger Capital Partners Investors Receive In Actual Cash?

By

Monday afternoon, Harbinger Capital Partners founder Phil Falcone informed investors that all those putting in redemption requests were in for a real treat. Instead of actual money, they will be receiving illiquid shares of LightSquared, which Phil is “convinced” provide “substantial upside.” Today, Bloomberg reports that investors have asked for at least $1 billion back (which would shrink the main fund to $3.25 billion). According to the letter, only “a portion” of withdrawl requests will be paid in LightSquared, without going into further detail. So. Continue reading »

  • 07 Jun 2011 at 2:40 PM

Harbinger Capital Will Pay Redemptions…In Illiquid LightSquared Equity

By

Or you can get a replica of this outfit. Your call.

Pop quiz: you’re a hedge fund manager named Philip Falcone. Last year investors got pretty bent out of shape when you loaned yourself $113 million in order to pay personal taxes, from a gated fund. Many of them, including Goldman Sachs and Blackstone, redeemed, and among the ones who stayed, well, they’re still not so happy, on account of the fact that you’ve tied up most of the fund’s money in a side project building walkie-talkies. A bunch of them put in requests to get their money back a couple months ago and you know they’re gonna just fa-reak (like they always do) if they don’t get it but you don’t have the scratch. You’ve been hoping the problem would just go away but it hasn’t and you need to think of something fast! What do you do? Whereas most managers wouldn’t have the foresight, you come up with something so genius you can’t wait to tell everyone about it.

“In light of my high conviction in LightSquared, its size within our portfolio and the necessity of maintaining a controlling position while we join forces with a strategic partner, we have determined to distribute a portion of the withdrawal proceeds for March 31, 2011 withdrawal requests in-kind,” said Falcone in a June 6 letter to investors…”While we have had opportunities to monetize a portion of our LightSquared position in recent months, I feel strongly that any sale by our funds of an interest in LightSquared would have been premature and would not only have jeopardized the ability to join forces with a strategic partner, but also would have limited the substantial upside that I am convinced will come to all of our investors as our plan is executed.”

Oddly, not all investors are thrilled. Continue reading »

  • 18 May 2011 at 5:18 PM

Headed To Vegas Next Week? If You Like Your Planes To Be GPS-Enabled, Consider Changing Plans

By

Probably no big deal, but if you’re a nervous flyer, please note that Phil Falcone’s LightSquared will be running some tests that might interfere with the technology on aircrafts flying near Vegas. Continue reading »