While LightSquared emerged from bankruptcy on July 15, one of its first moves was to ask the bankruptcy judge to keep other investors at bay until December, to allow the company to complete its recovery plan. The judge allowed LightSquared until December 6 to complete the process. However, that didn’t stop one Wall Street heavyweight from raising its initial $2 billion bid to acquire the company’s assets to $2.2 billion, in a struggle between two rival billionaires: Charlie Ergen of Dish Networks; and Philip Falcone of Harbinger Investments, which owns LightSquared.
LightSquared is slated to exit bankruptcy on May 31, and is required to have its future reorganization plan complete by July15.
Just when it seemed that LightSquared and its threat to GPS had finally faded away, following the February withdrawal of its operating licenses by the U.S. Federal Communications Commission (FCC), the company is back again, with new plans and, more surprisingly, a modest degree of FCC support.