Skip to content
Subscriber Only

LightSquared Judge Says She Can’t Reject Reorganization

Philip Falcone’s LightSquared Inc. persuaded a judge to let it go forward with a bankruptcy plan that will punish Dish Network Corp. Chairman Charles Ergen, a creditor and onetime bidder for the wireless company, if he doesn’t go along.

U.S. Bankruptcy Judge Shelley Chapman in Manhattan said today she has “no choice” but to approve LightSquared’s disclosure statement laying out terms of the reorganization plan, on which creditors can then vote. The plan values LightSquared at $7.7 billion and doesn’t hinge on regulatory approval for using the airwaves that are its main asset.