Dec 11 Private equity firm Centerbridge Partners
LP has reached a tentative deal to buy bankrupt
telecommunications firm LightSquared Inc for $3.3 billion, the
Wall Street Journal reported on Wednesday, quoting people
familiar with the matter.
LightSquared, backed by hedge fund manager Philip Falcone,
has been in bankruptcy since 2012 and is fighting to keep
control of its valuable spectrum amid a takeover push by Dish
Reuters could not reach Centerbridge or LightSquared for
comment outside regular business hours.
Three creditor groups have proposed plans that contemplate
an auction for the assets, and Dish has already made a baseline
bid of $2.2 billion.
Centerbridge has offered to pay about $3.3 billion for
LightSquared and assume about $1.7 billion in various
liabilities, the Journal quoted the people as saying. (WSJ
A filing on LightSquared's bankruptcy docket on Wednesday
evening showed that the company did not hold the auction for its
assets scheduled for Wednesday and that LightSquared was
pursuing an alternative transaction.
Fortress Investment Group LLC, earlier a
LightSquared investor, also planned to make an offer for the
bankrupt company, but withdrew the bid on Wednesday, the WSJ
It now backs Centerbridge's plan and with JPMorgan Chase &
Co and Falcone's hedge fund Harbinger Capital Partners,
will likely be a minority investor alongside Centerbridge in the
deal, the daily reported.