Phil Falcone’s bankrupt wireless venture LightSquared's proposed plan to exit bankruptcy is backed by several firms, including hedge funds.
Reuters reported that LightSquared's plan, which includes $2.75 billion in fresh loans and an equity investment of at least $1.25 billion, will be backed by New York-based hedge fund firm Fortress Investment Group and Falcone's Harbinger Capital Partners. Other backers include Melody Capital Advisors and JPMorgan Chase & Co.
The article said that the proposal replaces a previous plan based on an auction of the company assets, which LightSquared ultimately scrapped because it did not receive any qualified bids to compete with a $2.2 bid led by Dish Network chairman Charlie Ergen.
The plan estimated the company's assets would be worth $8.4 billion, assuming an effective date of September 30 and FCC approval for the company's license.