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.
- Sprint Scuttles LightSquared Deal
- LightSquared Gets Legal Eagles
- Ides of March Looms for LightSquared
- LightSquared CEO Leaves
- Report: LightSquared Fund Sued by Investors