LightSquared Director Considers BankruptcyLightSquared Director Considers Bankruptcy
LTE wholesaler isn't giving up, but its majority owner, Philip Falcone, says a voluntary bankruptcy may be how it 'completes its vision'
April 5, 2012

LightSquared may think it's too important to fail, but it's burning through cash as it works to get its network running. That's partly why Harbinger Capital Partners LP CEO Philip Falcone says he's seriously considering filing a voluntary bankruptcy for the flailing Long Term Evolution (LTE) wholesaler.
Falcone told Reuters on Wednesday that a voluntary Chapter 11 filing is one of the options he's considering for LightSquared, adding in a statement on Thursday that doing so would give it "necessary time to continue with our vision, build the network and protect the company from creditors who are more interested in a quick flip."
But, no decision has been made for the company yet, according to the hedge fund manager and majority owner.
Why this matters
LightSquared is running out of options to save its wholesale network as it's been thwarted by the Federal Communications Commission (FCC) , abandoned by key partner Sprint Corp. (NYSE: S) and subjected to shareholder wrath. The company is hanging by a thread, and bankruptcy -- voluntary or forced -- may end up being its only option.
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