Partner Madlyn Primoff Discusses Troubled Telecom Company’s Bankruptcy in Ars Technica
Ars Technica provides an update on telecom company LightSquared, which had filed for bankruptcy in spring of 2012 after the Federal Communications Commission (FCC)refused to approve its proposal for a nationwide 4Gwireless network on the grounds that the network would interfere with GPS devices. At this point in the bankruptcy proceeding, LightSquared’s assets have been put up for auction, with The Dish Network currently the highest bidder at $2.2 billion. LightSquared founder Phil Falcone would rather proceed with a new business plan that is waiting for FCC approval than let the company be absorbed into one of its competitors. However, LightSquared is running out of time, especially with Dish’s money on the table.
According to Kaye Scholer Bankruptcy and Restructuring Partner Madlyn Gleich Primoff, “the one overarching factor is how much money people are going to pay and how much money do the creditors get and when,” noting, “the 'when' piece is really dependent on FCC approval.”
Primoff continues, “It seems that the lenders are willing to let the assets go, and that means that there should be a sale.” That is, “unless there is something that Falcone can put on the table that has some chance of success,” she notes.