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Wireless venture LightSquared yesterday concluded three years of litigation with creditors, securing bankruptcy court approval of a reorganization plan to end its chapter 11 case and repay in full its largest creditor, Dish Network Corp. Chairman Charles Ergen, Reuters reported yesterday. The ruling ends one of the longest and most litigious bankruptcies in recent years, and will yield a hefty profit for Ergen, who other stakeholders portrayed as the villain for his unwillingness to take a haircut on his debt. Under the reorganization plan greenlighted by Judge Shelley Chapman in U.S. Bankruptcy Court in New York, LightSquared will exit chapter 11 under the control of Centerbridge Partners and Fortress Investment Group. Ergen, who amassed a $1 billion stake of the company's loan debt, will receive about $1.5 billion in cash, reflecting accrued interest. Founded by Phil Falcone's Harbinger Capital Partners, LightSquared had planned to build a massive wireless network when the Federal Communications Commission revoked its spectrum license over concerns of GPS interference, pushing it into bankruptcy in May of 2012. Since then, there have been about a dozen failed restructuring plans and litigation between the company and Ergen over the legality of his debt purchases.

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.

A bankruptcy judge gave Aereo Inc. approval yesterday to finalize the sale of its technology and remaining assets to TiVo Inc. and other buyers, Dow Jones Daily Bankruptcy Review reported today. The company has said that it is disappointed in the outcome of the sale, which brought in less than $2 million to help pay back creditors of the defunct TV-streaming service. In a recent lawsuit, Aereo accused major broadcasters of chilling bidding on the company's assets. A long-running lawsuit with those same broadcasters led Aereo into bankruptcy. In June, Aereo effectively shut down following a landmark U.S. Supreme Court loss that found that Aereo violated copyright laws by allowing customers to stream broadcast TV without paying a royalty to broadcasters.

LightSquared Inc. got an offer from hedge fund Solus Alternative Asset Management LP to buy $500 million of a loan held by Dish Network Corp. Chairman Charles Ergen, who is opposing the bankrupt broadband wireless venture’s reorganization plan, Bloomberg News reported yesterday. Solus, which earlier put forth a rival bankruptcy plan for LightSquared, said that it was encouraged instead to suggest improvements to the company’s own proposal, its fifth effort to exit court protection. The hedge fund said that it would pay Ergen in cash and invest another $89.5 million in LightSquared, taking 34.3 percent of its stock.

Aereo Inc., the online-TV service brought down by a U.S. Supreme Court copyright ruling, accused Walt Disney Co.’s ABC and other broadcasters of derailing the company’s bankruptcy auction in a bid to stifle competition, Bloomberg News reported yesterday. Aereo on Feb. 24 sold its patents, hardware and other assets piecemeal for less than $2 million -- a fraction of what it sought -- after a key bidder backed out, the company said in a lawsuit filed on Monday bankruptcy court. The potential buyer, which Aereo didn’t name, was scared off by a suggestion by Disney and other broadcasters that it may be liable for Aereo’s past copyright violations, for which the group is seeking almost $95 million in damages.

A lawyer for LightSquared yesterday said that the company will set aside $400 million to give certain bankruptcy lenders, including Dish Network Corp. Chairman Charles Ergen, the option to take a portion of their repayments in cash instead of notes, Reuters reported yesterday. The bankrupt wireless venture, opening a week-long trial seeking a judge's approval of its debt restructuring plan, is looking to end one of the most litigious bankruptcies of recent years. LightSquared, owned by Phil Falcone's Harbinger Capital Partners, was planning to build a massive wireless network when it was forced to file for bankruptcy in May 2012, after the Federal Communications Commission revoked its spectrum license over potential GPS interference. Since then, no fewer than seven restructuring proposals have failed amid creditor fights over the treatment of debt and the underlying value of LightSquared's spectrum. To end its bankruptcy, LightSquared must convince Bankruptcy Judge Shelley Chapman that its latest plan treats creditors fairly. The plan would let Harbinger retain some equity but cede operational control, transfer a chunk of equity to lenders Fortress Investment Group and Centerbridge Partners, and repay other lenders, including Ergen, via notes.