Wireless venture LightSquared yesterday overhauled its reorganization plan, and the new proposal appears to spell the end of longtime backer Philip Falcone's ownership of the wireless venture, the Wall Street Journal reported today. In the plan, LightSquared didn't make any references to a prior $3.05 billion restructuring proposal it had touted, which would have given 74 percent of the company to Cerberus Capital Management, Fortress Investment Group LLC and JPMorgan Chase & Co. in exchange for new money. Under the proposal filed yesterday, Dish Network Corp.'s Charlie Ergen, LightSquared's largest secured lender, would receive debt and nonvoting shares on account of his $900 million claim if he votes to accept the proposal. A group of investors holding LightSquared's bank debt would get the company's voting shares, although others could buy that equity from them at an auction. The plan calls for $500 million in new loans backstopped by those bank-debt holders. The company is scheduled to appear in bankruptcy court Monday afternoon.
