Phil Falcone thinks that LightSquared’s reorganization plan is way too generous to Charlie Ergen? Well, Charlie Ergen thinks that Phil Falcone’s reorganization plan for LightSquared is way too generous to Phil Falcone, and also not generous at all to himself, his lawyer would like to reiterate once again.
"The debtors can still reorganize, just not under this plan," said Willkie Farr & Gallagher LLP's Rachel S. Strickland, a lawyer for Mr. Ergen, LightSquared's largest secured lender.
"This is not a reorganization," Ms. Strickland said, pointing out that Lightsquared would be taking on more debt under the proposal.
Under the proposed restructuring, Mr. Falcone would retain more than a third of LightSquared's equity, a rarity in Chapter 11 cases. Mr. Falcone has denied in court that the plan treats him too well….
LightSquared says Mr. Ergen's holdings should be disallowed or placed below the claims of other creditors because he bought it as part of a scheme to ease the company into the hands of Dish, a competitor that was prohibited from buying the debt….
"We're not asking to do better," Ms. Strickland said. "We're asking to do the same."
Mr. Barr urged Judge Chapman to approve the plan, calling Mr. Ergen a "sole actor standing in our way."
He added, "It is a creditor that secretly and impermissibly entered LightSquared's capital structure," an argument Mr. Ergen has denied in both proceedings.