* Falcone says there is a plan
* Offers no details on what it may be
By Sinead Carew and Svea Herbst-Bayliss
Feb 15 Hedge fund manager Philip Falcone
is ruling out a bankruptcy filing for his telecom startup
LightSquared Inc, one day after U.S. regulators said they
planned to yank the company's approval to build a national
wireless broadband network.
"It is clearly not on our table," Falcone said in an email
to Reuters on Wednesday when asked if LightSquared, the biggest
investment in his Harbinger Capital Partners fund, was
considering a bankruptcy filing.
He said there is a plan for dealing with the Federal
Communications Commission's plan to revoke its permission for
LightSquared to build out a land-based network, but he declined
to offer any details.
Industry analysts and some LightSquared investors say the
telecom startup is running short of options with cash draining
away and little chance of getting the FCC to change its mind.
In a financial filing last year, LightSquared said it could
run out of money by the middle of this year.
"A bankruptcy Chapter 11 filing seems inevitable," said a person
with one of the hedge funds that owns some of LightSquared's
more than $1 billion in outstanding debt. The person declined to
be named because the situation is still fluid with LightSquared.