After the notion surfaced that LightSquared’s open wireless broadband network may interfere with global positioning systems, it seemed like nothing could save LightSquared. There was also the thought that revenues and earnings seemed just like an afterthought. It seems that this no longer matters.
Here is the formal announcement from LightSquared.
LightSquared has reportedly filed for bankruptcy protection. This will put the creditors in charge and the Bloomberg report shows that the company lists more than $1 billion in assets and liabilities each. Creditors had previously asked backer Philp Falcone of Harbinger Capital Partners to move aside after he had invested some $3 billion or so into the company.
Bloomberg also noted that Carl Icahn cleaned up buying and selling the LightSquared debt, but Dish Network Corp. (NASDAQ: DISH) Chairman Charlie Ergen has reportedly acquired some $350 million of the debt.
The company’s website notes, “LightSquared will unleash the boundless opportunity of wireless broadband connectivity for all. We believe that it is time to transform the broadband industry to one that truly fosters innovation, creativity, and freedom of choice—with limitless and unimaginable possibilities.” It sure sounds like LightSquared needs to change all of those verbs to past tense.
Another huge wireless venture bites the dust. Whether or not this company has any future other than its large spectrum is a guess.
JON C. OGG