Bankrupt U.S. wireless venture LightSquared filed a new restructuring plan that would pay the full $1.5 billion claim to its largest creditor, Dish Network Corp. Chairman Charles Ergen, in cash, with interest, Reuters reported yesterday. The plan is premised on a $1.5 billion financing commitment from Jefferies Finance LLC, which would pocket a $174 million fee and other compensation for arranging the deal. In LightSquared's three years in chapter 11, there has been a parade of failed restructuring plans and litigation between the company and Ergen over the legality of his purchase of a huge chunk of LightSquared loan debt. However, this is the first proposal that would pay the full amount of Ergen's $1 billion claim, with interest.
