LightSquared Inc. hasn’t acted on a $2 billion cash offer from Dish Network Corp. Chairman Charlie Ergen’s wholly owned entity L-Band Acquisition Corp. since it was received five weeks ago, a group of the bankrupt company’s lenders said.
The lenders also said in court papers filed in Manhattan bankruptcy court yesterday that Ergen’s SP Special Opportunities LLC fund joined the lender group on June 13. The partially redacted document, in which some information is under seal and blacked out, said LightSquared is conflicted.
“An unconflicted debtor would promptly engage with LBAC, execute a stalking horse agreement and move expeditiously to an auction,” lawyers for the lenders said. “These Debtors, however, have not met, negotiated terms, made a counter-offer or otherwise engaged with LBAC in the nearly five weeks since the offer was made.”
The lender group, which owns $1.38 billion of debt in the company’s LP unit, includes Capital Research and Management Co., Cyrus Capital Partners LP, Solus Alternative Asset Management LP, Intermarket Corp. and UBS AG, according to court papers. SP Special Opportunities is the largest debt owner of the group, with $818.8 million in secured loans, according to the records.
The group seeks emergency court permission to enforce the terms of a court order that gives LightSquared exclusive rights to file its own plan of reorganization.
LightSquared, which is controlled by Philip A. Falcone’s Harbinger Capital Partners LLC, filed for bankruptcy in May 2012 listing assets of $4.48 billion and debt of $2.29 billion.
The case is In re LightSquared Inc., 12-12080, U.S. Bankruptcy Court, Southern District of New York (Manhattan).