LightSquared Inc. has proposed a reorganization that includes a potential sale of its wireless spectrum instead of an auction led with a $2.2 billion bid from a unit of Dish Network Corp., Bloomberg News reported Friday. LightSquared filed the plan outline Friday in the U.S. Bankruptcy Court in Manhattan and said it will continue to seek approval from the Federal Communications Commission to use its airwaves. The company said it also will weigh a sale of the assets, but didn’t identify any potential bidders. LightSquared’s proposal before the FCC “represents the best, immediate option to use this spectrum for mobile broadband,” Chief Executive Officer Doug Smith said. The regulator is taking comments through Sept. 23 on LightSquared’s proposal. Reston, Va.-based LightSquared, which filed for bankruptcy in May 2012 listing assets of $4.48 billion and debt of $2.29 billion, filed a general outline of how creditors should evaluate competing plans for the company. One plan, already filed by a group of lenders to its LP unit, proposes an auction with the Dish unit as lead bidder. The case is In re LightSquared Inc., 12-bk-12080, U.S. Bankruptcy Court, Southern District of New York (Manhattan).
