Remember LightSquared? Company that "seeks to create connectivity for all" but in doing so might "cost 794 lives in aviation accidents over 10 years with disruptions to satellite-aided navigation”? Filed for Chapter 11 bankruptcy in May 2012? Passion project of investor Philip Falcone, on which he bet the farm? The thing Falcone said he was thrilled to be able to devote 100% of his energy to after being banned from the securities industry for a few years? He owns a lot less of today than he did yesterday.
Philip Falcone's LightSquared on Tuesday unveiled a $3.05 billion restructuring plan that would give 74% of the wireless venture to Cerberus Capital Management LP, Fortress Investment Group LLC and J.P. Morgan Chase & Co., and leave Mr. Falcone with just 12.5% of the reorganized company's equity...A prior plan, rejected by Judge Chapman for being unfair to Mr. Ergen, was led by Fortress and would have allowed Mr. Falcone and Harbinger to keep at least 35% of the company's equity. The plan called for Mr. Falcone and other representatives of his Harbinger Capital Partners hedge fund firm to resign from the LightSquared board. Last month, Mr. Falcone and the other Harbinger representatives did resign from the company's board...Without support from the Federal Communications Commission, LightSquared isn't able to fully use spectrum---limited pockets of airwaves that mobile-phone and Internet companies use----that it owns.