LightSquared Inc., Philip Falcone’s bankrupt wireless-spectrum company, will get court permission to have creditors vote on four competing plans to restructure the company, Bloomberg News reported yesterday. U.S. Bankruptcy Judge Shelley Chapman in Manhattan said that she would approve all four disclosure statements, which describe the reorganization plans, once final versions are submitted. The plans come from the company, an ad-hoc group of lenders, Falcone’s Harbinger Capital Partners LLC, and U.S. Bank NA and Mast Capital Management LLC. Creditors will vote by Dec. 5, according to court papers. LightSquared’s plan proposes a sale of almost all of its assets at auction while the company seeks approval from the Federal Communications Commission to use its airwaves. The lender group, which holds $1.4 billion of the $1.7 billion in debt of LightSquared’s LP unit, has a similar plan calling for a sale. A unit of Charlie Ergen’s Dish Network Corp. (DISH) would make a stalking-horse bid of $2.2 billion. Harbinger’s plan would reorganize LightSquared without a sale. The case is In re LightSquared Inc., 12-bk-12080, U.S. Bankruptcy Court, Southern District of New York (Manhattan).
