LightSquared, the bankrupt wireless venture owned by Phil Falcone's Harbinger Capital Partners, on Thursday submitted a new restructuring plan under which Harbinger would hold onto a sizable stake in the company, Reuters reported yesterday. The plan is the latest in a string of so far unsuccessful restructuring efforts as Harbinger wrangles for control of LightSquared with its largest creditor, satellite mogul Charles Ergen. Throughout LightSquared's two-and-a-half-year journey in chapter 11, the company and creditors have advanced various proposals to fund its exit, some including Harbinger and others all but eliminating it from the capital structure. The latest would give Harbinger a 44 percent equity stake in a reorganized LightSquared, but no board membership or control over day-to-day operations. Fortress Investment Group and Centerbridge Partners, both LightSquared investors, would own 26 percent and 8 percent, respectively. Ergen's $1 billion chunk of LightSquared's loan debt would be repaid via notes.
