Dec 18 (Reuters) - 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 Journal reported.
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.