Harbinger Capital Partners, the venture capital firm backing LightSquared, is bidding on bankrupt satellite company DBSD together with Solus Alternative Asset Management.
Harbinger and Solus are seeking to upset an attempt by Dish Network to buy DBSD in an effort to acquire the company's valuable spectrum resources.
In a letter to DBSD and the U.S. Bankruptcy Court for the Southern District of New York, Harbinger and Solus said they believed their offer is "superior" to Dish Network's offer because "the proposed transaction provides a greater cash component to holders of claims against the debtors and permits certain of such creditors the option to participate in the equity of the reorganized company if they so choose."
DBSD is scheduled to try for court approval of Dish's offer today, according to a Bloomberg report. Solus managing director Stephen Blauner said in the letter that DBSD had decided to accept Dish's proposal after considering the offer from Harbinger and Solus.
"I learned today that, in resisting a continuance of the pending motions, certain statements were made to the court that only 'non-binding expressions of interest,' or a similar term, have been received by the debtors, possibly leading the court to believe that no serious expressions of interest had been submitted. I wish to clarify or correct this understanding and am prepared to testify about these matters if called or permitted to do so," Blauner said.
It is not clear what effect, if any, the letter from Harbinger and Solus could have on Dish's attempt to acquire DBSD. The investment firms said in a separate letter that they may combine DBSD with Terrestar, a bankrupt satellite communications company partially owned by Harbinger.