LightSquared's reorganization plan gives too much to value to the wireless venture's top shareholder, Philip Falcone, and shouldn't be approved, a lawyer for Dish Network Corp. Chairman Charlie Ergen said yesterday, the Wall Street Journal reported today "The debtors can still reorganize, just not under this plan," said Willkie Farr & Gallagher LLP's Rachel S. Strickland, a lawyer for Ergen, LightSquared's largest secured lender. Under the proposed restructuring, Falcone would retain more than a third of LightSquared's equity, a rarity in chapter 11 cases. Falcone has denied in court that the plan treats him too well. LightSquared is seeking court approval of its restructuring plan, but also wants a favorable ruling in a separate trial over its allegations that Ergen improperly acquired nearly $1 billion in the company's debt.
