LightSquared's founder, Harbinger Capital Partners LP CEO Philip Falcone, had been trying to strike a deal with lenders that would keep the company afloat. An agreement couldn't be reached, however, and the operator filed for Chapter 11 protection.
Why this matters The move to bankruptcy is hardly a surprise as the company had few options after the Federal Communications Commission (FCC) blocked its plan for an Long Term Evolution (LTE) in satellite spectrum because of GPS interference concerns. The arch of LightSquared's progress, however, throws into question just how the government can promote the deployment of mobile broadband in the U.S. and whether the wholesale model is viable for other operators like Dish Network LLC (Nasdaq: DISH) (See Dish Snaps Up Some LightSquared Debt .)
- Falcone Could Step Down From LightSquared
- LightSquared Director Considers Bankruptcy
- Sprint Scuttles LightSquared Deal
- LightSquared CEO Leaves
- Report: LightSquared Fund Sued by Investors
— Dan Jones, Site Editor, Light Reading Mobile