Dec 18 Private equity firm Centerbridge Partners
LP backed out of its deal to buy LightSquared Inc, amid
uncertainty over when federal regulators would clear the way for
the company to build out its wireless network, the Wall Street
Centerbridge had offered to pay about $3.3 billion for
LightSquared, which has been in bankruptcy since 2012 and is
fighting to keep control of its valuable spectrum amid a
takeover push by Dish Network Corp.
The private equity firm was worried that it would have to
spend huge amounts of cash while waiting for regulators to
approve a proposal to pursue a spectrum swap that would allow
LightSquared to build out its network, the newspaper said,
citing people familiar with the matter.
Centerbridge abandoned the deal due to "economic and
non-economic reasons," a LightSquared lawyer told the Journal.()
The company still hoped to move ahead with the current
structure of its bankruptcy reorganization plan, despite
Centerbridge backing out, its lawyers told a bankruptcy judge,
the Journal said.
Reuters could not reach Centerbridge and LightSquared for
comment outside regular U.S. business hours.