From FINalternatives:
Harbinger Cut Out Of LightSquared Bankruptcy Exit Plan
Aug 8 2014 | 4:40am ET
The latest bankruptcy-exit plan from Harbinger Capital Partners’ wireless internet venture would wipe out the hedge fund’s nearly $2 billion investment and end its relationship with the company.
LightSquared unveiled a new reorganization plan yesterday that includes Dish Network founder Charles Ergen, whom it and Harbinger had accused of illegally buying LightSquared debt. But it leaves Harbinger with nothing.
The plan the new reorganization replaces would have left Harbinger, which had controlled LightSquared, with a 12.5% stake in the company, with Cerberus Capital Management, Fortress Investment Group and JPMorgan Chase sharing a 74% stake. Now, if Ergen votes to approve the deal, he’ll get new debt and non-voting shares, while other LightSquared creditors would get voting shares in exchange for $500 million in new loans....MORE
