US satellite and terrestrial venture LightSquared has asked the FCC to approve its request to set up a mobile broadband service covering the US, according to a regulatory filing. Last month, the troubled operator secured bankruptcy court approval for a…
US satellite and terrestrial venture LightSquared has asked the FCC to approve its request to set up a mobile broadband service covering the US, according to a regulatory filing.
Last month, the troubled operator secured bankruptcy court approval for a restructuring plan that will see it exit Chapter 11 proceedings after three years of wrangling. The new restructured entity, to be known as New LightSquared, will have US$1.25bn in operating funds.
The group has seen a myriad of failed restructuring proposals since it filed for voluntary Chapter 11 bankruptcy in May 2012, after its spectrum was found to interfere with GPS technology.
The FCC is still reviewing requests to avoid interference to GPS by using different airwaves.
The new entity will be led by Ivan Seidenberg, a former chairman of Verizon Communications, and Reed Hundt, a former FCC chairman.
The company, which expects to exit bankruptcy protection by the end of the year, has been financially strained by a legal battle which has seen Dish Network chairman Charles Ergen and Philip Falcone, head of LightSquared’s majority equity owner Harbinger Capital Partners, joust over control of the venture for the past few years.
As part of the new restructuring plan, Ergen, LightSquared’s biggest creditor, will receive about US$1.5bn in cash, reflecting interest, while Harbinger will keep more than 44% of LightSquared’s equity – although it will not have a say in the group’s day-to-day operations.
Investors Centerbridge Partners and Fortress Investment Group will own a combined 34% stake, as well as the right to appoint board members. JPMorgan Chase & Co will own LightSquared’s Inc unit, including the tax benefits derived from its net operating losses.
