US DTH operator Dish Network has reportedly withdrawn its US$2.2bn offer to take satellite/terrestrial venture LightSquared out of Chapter 11 bankruptcy.
Joshua Sussberg, a lawyer for the committee set up to oversee any potential LightSquared auction,…
US DTH operator Dish Network has reportedly withdrawn its US$2.2bn offer to take satellite/terrestrial venture LightSquared out of Chapter 11 bankruptcy.
Joshua Sussberg, a lawyer for the committee set up to oversee any potential LightSquared auction, was cited opening a court hearing on 9 January by confirming that Dish had pulled its bid.
Referring to sources, the Wall Street Journal had earlier reported about the company’s decision. It added that LightSquared’s creditors who supported the transaction have claimed Dish would be in beach of contract if it walked away.
Dish was unable to comment before the press deadline.
LightSquared’s hedge fund owner Harbinger Capital Partners had already rejected Dish’s bid, and recently chose to back the LTE venture’s own plan to exit bankruptcy, claiming regulatory approval to use its spectrum is “within reach”.
That plan is also supported by JP Morgan, private equity firm Fortress Investment Group and private lending group Melody Capital Partners. It involves US$2.5bn in senior secured exit facility financing, a US$250m senior secured loan, and at least US$1.25bn in new equity contributions.
The hearing today is scheduled to discuss LightSquared’s next steps.
