LightSquared hopes to submit a consensual restructuring plan by Friday, although the judge overseeing the wireless venture's bankruptcy isn't convinced that will happen, Reuters reported yesterday. A lawyer for the company said in a court hearing yesterday that it aims to file a reorganization plan that has the support of its creditors by Friday, putting the company, owned by Phil Falcone's Harbinger Capital Partners, on track to exit bankruptcy around the end of March. But Bankruptcy Judge Shelley Chapman voiced skepticism that parties in the fractious case could reach a deal by then. Three competing restructuring proposals are on the table — one backed by Harbinger and two others from creditor groups — but the company has said it plans to engage creditors and work toward a consensual deal. The key question is whether any restructuring plan would have the support of an investment vehicle run by Dish Network Corp Chairman Charles Ergen. The Ergen entity holds enough LightSquared debt to give him sufficient voting clout to block any restructuring plan that he opposes.
