LightSquared’s hedgefund owner has received an extension to exclusively control the satellite/terrestrial venture’s bankruptcy plan.
The extension deal enables Harbinger Capital Partners keep LightSquared’s creditors at bay until 15 July, giving…
LightSquared’s hedgefund owner has received an extension to exclusively control the satellite/terrestrial venture’s bankruptcy plan.
The extension deal enables Harbinger Capital Partners keep LightSquared’s creditors at bay until 15 July, giving the venture more time to resolve the spectrum interference issues that are preventing it from deploying a terrestrial network.
The company said recently that it had made progress in its talks with the FCC, and a resolution could see it use frequencies currently held by the US government.
But a group of LightSquared’s lenders had criticised what it described as Harbinger’s “high risk, low probability strategy”, as they attempted to terminate the company’s exclusivity period.
Instead, the lenders – representing a portion of debt in LightSquared LP, the group’s main operating unit – called for an auction process that would test the market for its assets.
In court documents, they explained: “The plan would establish the LP Lenders as the ‘Stalking Horse’ bidder for the debtors’ assets, and would also allow competing bids from parties (including Harbinger) who have both the means and the inclination to utilise the debtors’ assets now.
“Unlike the governmental agencies around which the debtors now centre their only potential plan, commercial parties are free now to negotiate, bid, reach agreement –and monetise the value of the debtors’ estates.”
LightSquared filed for voluntary reorganisation under Chapter 11 bankruptcy protection back in May after some of its spectrum was found to interfere with GPS technology.
GPS sector forges new lobby group
A coalition of GPS companies has launched a new lobbying organisation called the GPS Innovation Alliance to represent the industry’s general interests.
The group, whose founding members are GPS makers Deere, Garmin and Trimble, grew out of the Coalition to Save our GPS lobby group that was formed to take down LightSquared as its interference problems became apparent.
GPS Innovation Alliance is headquartered in Washington, and its members span a variety of fields and businesses reliant on GPS, include manufacturing, aviation, agriculture, construction, transportation, first responders, surveying and mapping.
Jim Kirkland, Trimble’s general counsel, explained: “From its infancy just over 30 years ago, the GPS of today is a highly innovative, successful and increasingly ubiquitous technology that is critical to smart infrastructure, services and applications. The Alliance is committed to ensuring constructive, robust dialog between GPS users, manufacturers and policy makers on critical policy issues affecting GPS – a commitment Trimble is pleased to be a part of as the industry continues to innovate and modernise.”
