LightSquared looks shaky
mo at ccr.org
Sun May 13 20:52:11 CDT 2012
LS has been in free fall for some time now.
As has been pointed out in many cartoons,
It ain't the V that gets ya, it's that old' dV/dt
And the sudden stop is getting vewy vewy cwose now!
Sent from my iPad so please excuse the jammy fingers.
On May 13, 2012, at 6:42 PM, "fgentges at mindspring.com" <fgentges at mindspring.com> wrote:
> Lenders seem impatient to be repaid. Bankruptcy may be soon. Lenders may be facing the fact that it is a dumb idea and are unwilling to extend the time for repayment.
> Frank K0BRA
> Phil Falcone's LightSquared preparing for potential bankruptcy filing: sources
> Last Updated: 11:16 AM, May 13, 2012
> Posted: 11:16 AM, May 13, 2012
> Hedge-fund manger Philip Falcone's LightSquared Inc. venture is preparing for a potential bankruptcy-protection filing, as negotiations with lenders to avoid a potential default faltered, according to people familiar with the matter.
> The two sides still have until 5:00pm Monday to reach a deal that would keep LightSquared out of bankruptcy court, and there were indications over the weekend that a final decision hadn't yet been reached on the company's fate. Still, the two sides remained far apart and people involved in the negotiations expected LightSquared to begin making bankruptcy preparations in earnest.
> Lenders aren't expected to grant LightSquared an extension on a debt-term violations waiver that expires Monday at 5:00pm, the people said. Falcone, whose hedge-fund firm, Harbinger Capital Partners, is LightSquared's main backer, couldn't agree with lenders on how much ownership in the wireless venture to cede to them over time, the people said. There were also a number of other terms separating the two sides.
> Falcone believes the lenders "are asking for conditions they know Harbinger and Phil cannot agree to," said a person close to the negotiations. Falcone continues to seek a middle ground, while conceding the odds of a deal looked low over the weekend, this person said.
> LightSquared's board tentatively planned to meet Sunday to discuss authorizing a bankruptcy filing, some of the people said. It is likely a Chapter 11 bankruptcy filing would come sometime before Monday evening, these people said.
> The lenders wanted LightSquared to be overseen by an independent board that didn't include Falcone. The hedge-fund manager tacitly agreed to that, but the financial restructuring created a gulf between the two sides. The lenders also wanted to hold Falcone personally liable for a future bankruptcy filing under certain circumstances, but Falcone balked at that term, especially since he was poised to no longer sit on LightSquared's board or make key decisions for the firm, the people said.
> To read more, go to The Wall Street Journal
> Read more: http://www.nypost.com/p/news/business/phil_falcone_lightsquared_preparing_ADD5meFa8puSqulYdVOurK#ixzz1unAY5H4h
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