| NEW YORK, July 1
NEW YORK, July 1 Bankrupt wireless venture
LightSquared on Tuesday revealed a restructuring proposal that
would cede 74 percent of its equity to a new investor group that
includes JPMorgan Chase & Co, Cerberus Capital
Management and Fortress Investment Group.
Phil Falcone's Harbinger Capital Partners, which now
controls LightSquared, would retain about 12 percent of the new
equity, according to Joshua Sussberg, a lawyer for a committee
overseeing LightSquared's restructuring efforts. Sussberg was
speaking at a hearing in U.S. Bankruptcy Court in Manhattan.
The investment group would supply $1.75 billion in new
LightSquared's largest creditor, Dish Network Corp
Chairman Charles Ergen, would be repaid $470 million in cash and
an unsecured note worth at least $492 million, said Sussberg,
who is with Kirkland & Ellis. Ergen has not agreed to the plan.
LightSquared and Ergen have been bitter rivals throughout
the bankruptcy. LightSquared has accused Ergen of
surreptitiously buying up its debt in violation of a credit
agreement that bars competitors like Dish from owning company
debt. Ergen insisted the investment was personal.
LightSquared went bankrupt in 2012 after the Federal
Communications Commission revoked its spectrum license amid
fears its planned wireless network could interfere with GPS
The latest restructuring is slated to go before Judge
Shelley Chapman for approval sometime in August.
(Reporting by Nick Brown in New York; editing by Tom Hals and