Philip Falcone’s LightSquared Inc. should be the one to benefit from regulatory approval of the company’s wireless spectrum, the bankrupt company said as part of an objection to competing plans that would reorganize it by selling assets, Bloomberg News reported yesterday. “All [of] LightSquared entities should be permitted to reorganize and enjoy the significant value realized when the FCC grants LightSquared’s pending applications,” the company said in a court filing yesterday. During the company’s Dec. 30 court hearing, its lawyers discussed the latest talks with the Federal Communications Commission behind closed doors in U.S. Bankruptcy Judge Shelley Chapman’s chambers. LightSquared has a plan to reorganize as a standalone company, while an ad hoc group of its lenders seek to sell off its main wireless spectrum assets in an auction led by a $2.22 billion bid from an entity owned by Charlie Ergen, chairman of LightSquared’s rival Dish Network Corp.
http://www.bloomberg.com/news/print/2014-01-02/lightsquared-said-it-sho…
In related news, LightSquared said that it wants to extend the incentive bonus package for its top executives as the company eyes an end to its chapter 11 case, Dow Jones Newswires reported yesterday. LightSquared said in a court filing on Tuesday that it wants to alter the parts of the bonuses tied to when the company emerges from bankruptcy and receives regulatory approvals for its networks. The original $6 million proposal was approved in October 2012, but the parts of the bonuses tied to those events expired on Dec. 31. LightSquared wants to modify the plan so its top four executives get cash bonuses of 75 percent of their salary if Judge Shelley C. Chapman confirms a restructuring or approves a sale of the company by Feb. 15. After that, those executives — Chief Executive Doug Smith, Chief Financial Officer Marc Montagner, General Counsel Curtis Lu and regulatory executive Jeffrey Carlisle — would not receive anything.
http://www.nasdaq.com/article/lightsquared-seeks-to-extend-management-b…