LightSquared is heading for a 25 November auction after its bankruptcy judge approved a sales process that includes a US$2.2bn stalking horse bid from an affiliate of DTH giant Dish Network.
The timing is earlier than a previously planned 6 December…
LightSquared is heading for a 25 November auction after its bankruptcy judge approved a sales process that includes a US$2.2bn stalking horse bid from an affiliate of DTH giant Dish Network.
The timing is earlier than a previously planned 6 December date, although the final confirmation of auction bids remains unchanged at 10 December.
Judge Shelley Chapman cleared the way for a sale after the satellite/terrestrial venture pledged to replace a member of the independent committee that would oversee the process, following complaints from lenders over a potential conflict of interest.
Donna Alderman, who lost her job as a director at satellite operator DBSD North America (formerly ICO North America) after Dish acquired it out of bankruptcy in 2011, is being replaced on the committee by Christopher Rogers, founder of US telco Nextel.
Whereas Dish will be bidding for LightSquared’s more valuable spectrum, creditors U.S Bancorp and Mast Capital Management are reportedly lining up for a smaller amount of its frequencies.
Key LightSquared lenders, including an investment vehicle linked with Dish chairman Charlie Ergen, had been at odds with the venture’s owner, hedge fund Harbinger Capital Partners, over how to run the auction of its assets.
Whereas the creditors sought to open up the auction using Ergen’s stalking horse bid, which would cover their circa US$1.7bn of debt, Harbinger claimed the offer was not viable because it is linked to debt trades by a strategic competitor (Dish) that allegedly goes against bankruptcy rules.
