Christmas Eve scramble on for LightSquared
The tug-of-war over wireless start-u𓃲p LightSquared continues to rage into the holidays.
A group led by private-equitꦜy shop Fortress is seeking to♕ raise $2 billion in debt to buy the Reston, Va., start-up out of bankruptcy, sources told The Post.
Dish Network Chairman Charlie Ergen, meanwhile, pr🧔essed a bankruptcy judge this week to move on his competing $2.2 billion offer.
As The Post reported on Tuesday, Fortress has been working to cobble together a deal with JPMorgan, 𒁏Mast Capital Management and other investors since private equity firm Centerbridge pulled its $5 billion bid to buy the troubled wireless network last week.
Centerbridge’s offer, including $3.3 billion in cash and the assumption of $1.7🧔 billion in debt, seemed to push aside Ergen’s competing offer until Centerbridge unceremoniously pulled the plug last week — leaving its investing partners, including Fortress, scrambling.
Fortress, 🐽JPMorgan and Mast own stakes in LightSquared that may not be covered by Ergen’s $2.2 billion offer, thus providing them with incentiv❀e to outbid Ergen.
Fortress and JPMoꦇrgan own preferred shares, said a person with knowledge of the deal. Mast Capital, meanwhile, has a financial stake in a line of spectr𒐪um that would not be purchased by Ergen.
Billionairಞe investor Phil Falcone, currently LightSquared’s largest shareholder, is also aligned with Fortress.
Falcone stands to get shafted the most if Er💟gen wins o𓂃ut.
But time is quickly running out. Bids are due by Dec.༒ 24.
Meanwhile, owners of a $1.7 billion first-lien loan, 𝐆the ma🌟jority of which is owned by Ergen, pressed a bankruptcy judge this week to accept the Dish founder’s bid.
To ignore the offer without𒉰 a competing offer would be “alarming and reckless,” th🔴e group said.
Falcone and Ergen have been dueling over LightSquared for months. Ergen wants t🤪he spectrum to offer wireless services alongside Dish’s satellite o🎉fferings. Falcone wants to save the $3 billion he’s already funneled into the bankrupt company.