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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'

Sarah Thomas

April 5, 2012

1 Min Read
LightSquared Director Considers Bankruptcy

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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About the Author(s)

Sarah Thomas

Director, Women in Comms

Sarah Thomas's love affair with communications began in 2003 when she bought her first cellphone, a pink RAZR, which she duly "bedazzled" with the help of superglue and her dad.

She joined the editorial staff at Light Reading in 2010 and has been covering mobile technologies ever since. Sarah got her start covering telecom in 2007 at Telephony, later Connected Planet, may it rest in peace. Her non-telecom work experience includes a brief foray into public relations at Fleishman-Hillard (her cussin' upset the clients) and a hodge-podge of internships, including spells at Ingram's (Kansas City's business magazine), American Spa magazine (where she was Chief Hot-Tub Correspondent), and the tweens' quiz bible, QuizFest, in NYC.

As Editorial Operations Director, a role she took on in January 2015, Sarah is responsible for the day-to-day management of the non-news content elements on Light Reading.

Sarah received her Bachelor's in Journalism from the University of Missouri-Columbia. She lives in Chicago with her 3DTV, her iPad and a drawer full of smartphone cords.

Away from the world of telecom journalism, Sarah likes to dabble in monster truck racing, becoming part of Team Bigfoot in 2009.

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