Broadband company LightSquared on Monday urged a judge to find that its largest creditor, Dish Network Corp. Chairman Charles Ergen, acquired his debt holding improperly, Reuters reported yesterday. Bankruptcy Judge Shelley Chapman was hearing closing arguments in a trial over whether Ergen concealed his identity to acquire his controlling stake of LightSquared's debt. The outcome of the trial is likely to determine the fate of LightSquared's wireless rights after it emerges from chapter 11. LightSquared has proposed to exit bankruptcy under a plan that would subordinate Ergen's claims while paying other secured creditors in full and allow Harbinger to retain an ownership stake. A bankruptcy confirmation hearing is to start tomorrow.
