NEW YORK, July 14 Bankrupt wireless venture
LightSquared and its largest creditor, Dish Network Corp
Chairman Charles Ergen, have resolved a long-running
dispute over Ergen's treatment under LightSquared's proposed
According to court papers filed on Monday in U.S. Bankruptcy
Court in Manhattan, the sides reached a deal after extending a
previously-completed mediation session.
An agreement would resolve more than a year of fighting
between the parties, and could obviate the need for a second
major trial scheduled for later this summer. While the filing
gave no details on the deal, a hearing was scheduled for Monday
afternoon in the Manhattan court.
LightSquared, owned by Phil Falcone's Harbinger Capital
Partners, went bankrupt in 2012 after the Federal Communications
Commission revoked its license to operate its spectrum amid
fears of GPS interference.
Ergen later acquired about $1 billion of LightSquared's
senior loan debt, leading the company to accuse him in a lawsuit
of trying to surreptitiously gain control of the company.
Judge Shelley Chapman sided with LightSquared in the
lawsuit, but still rejected the company's plan to reorganize by
subordinating Ergen's debt, saying the plan went too far. After
a failed mediation, Ergen also opposed a second LightSquared
restructuring proposal that would have subordinated a piece, but
not all, of his debt, and vowed to litigate again.
Monday's announcement would appear to signal peace between
(Reporting By Nicholas Brown)