Reports: LightSquared could file for bankruptcy
LightSquared could file for bankruptcy as early as today, according to reports citing people familiar with the matter.
LightSquared and its lenders have until 5 p.m. EST today to strike a deal that would keep the company out of bankruptcy court, both Reuters and The Wall Street Journal reported over the weekend. The Journal said the two sides remained far apart, and people involved in the negotiations expected LightSquared to start making bankruptcy preparations in earnest.
The venture, backed by hedge fund manager Philip Falcone, twice received a waiver from lenders to prevent it from defaulting, but lenders were not expected to extend the waiver yet again before today’s deadline.
A LightSquared spokesman declined to comment this morning.
LightSquared’s plans to build a nationwide wireless network and offer services on a wholesale basis went awry when the GPS community accused it of interference.
Some reports over the weekend speculated that Dish Network head Charlie Ergen could step in.