LightSquared Can Raise $1 Billion, Credit Suisse Says

Philip Falcone’s LightSquared Inc. will probably be able to borrow $1 billion to finance its exit from bankruptcy as a standalone company, Credit Suisse Securities LLC said in a letter made public yesterday.

The Credit Suisse Group AG (CSGN) unit said it was confident it could arrange the proposed bankruptcy-exit loan as long as LightSquared, a wireless broadband provider, met conditions including obtaining the “cooperation of all parties-at-interest” in the reorganization and “all required regulatory approvals.”

A copy of the letter was filed in U.S. Bankruptcy Court in Manhattan.

LightSquared, based in Reston, Virginia, sought bankruptcy protection in 2012 after the Federal Communications Commission blocked the company’s service, saying it might interfere with civilian and military global-positioning-system navigation equipment. Since then, it’s been engaged in a struggle for control of its future with Dish Network Corp. (DISH) Chairman Charles Ergen.

Ergen, who accumulated a $1 billion stake in LightSquared debt, at one point offered to buy some of the company’s airwaves for $2.2 billion, only to drop the proposal amid a dispute with Falcone, whose Harbinger Capital Partners LLC controls LightSquared.

Photographer: Jacob Kepler/Bloomberg

Harbinger Group Inc. Chief Executive Officer Philip Falcone speaks during a panel discussion at the SkyBridge Alternatives conference in Las Vegas, Nevada, on May 9, 2012. Close

Harbinger Group Inc. Chief Executive Officer Philip Falcone speaks during a panel... Read More

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Photographer: Jacob Kepler/Bloomberg

Harbinger Group Inc. Chief Executive Officer Philip Falcone speaks during a panel discussion at the SkyBridge Alternatives conference in Las Vegas, Nevada, on May 9, 2012.

Ergen Sued

LightSquared and Harbinger sued Ergen, in an effort to have his claim thrown out because, they say, it was improperly acquired. Rivals such as Ergen’s satellite TV business were barred from buying the debt, according to the companies.

Ergen has said he was acting personally, not for Dish, in buying the debt and made no “false representations” about his investment.

Under the exit plan, LightSquared would emerge as a standalone company valued at $7.7 billion, with more funding to pursue its ambitions with regulators. A member of a committee of the company’s board this week told the bankruptcy judge that LightSquared will probably get approval to use some of its wireless spectrum by 2015.

The case is In re LightSquared Inc., 12-bk-12080, U.S. Bankruptcy Court, Southern District of New York (Manhattan).

To contact the reporter on this story: Steven Church in Wilmington, Delaware at schurch3@bloomberg.net

To contact the editors responsible for this story: Andrew Dunn at adunn8@bloomberg.net Mary Romano

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