Dish Network Corp. said a plan to restructure LightSquared based on its now-withdrawn offer for the company's assets should be considered completely off the table despite the efforts of hedge funds to keep it alive, Dow Jones Daily Bankruptcy Review reported today. Dish's filing in bankruptcy court on Thursday comes as LightSquared continues arguing at a trial that Dish Chairman Charles Ergen improperly bought LightSquared's bank debt — the same class of debt owned by the hedge funds — on behalf of Dish. As a LightSquared competitor, Dish is prohibited from buying that debt.
