Bankrupt LightSquared, after three years of litigation with creditors, today will seek U.S. court approval of a mostly consensual plan to end its bankruptcy and repay in full its largest creditor, Dish Network Corp. Chairman Charles Ergen, Reuters reported today. LightSquared's bankruptcy is being closely watched because its main asset, wireless spectrum, is considered very valuable. Just how valuable it is, and what it can be used for, has been fiercely debated among stakeholders, and the bankruptcy will determine who ultimately controls it. LightSquared, the wireless venture owned by Phil Falcone's Harbinger Capital Partners, entered bankruptcy in May 2012 when the Federal Communications Commission revoked its spectrum license over concerns of GPS interference. Since then, 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, LightSquared today will present a plan to give Ergen what he has long demanded: repayment of his $1 billion claim, in full, in cash, and with interest — a $1.5 billion tab.
