Dish Network Executive to Take Over LightSquared Wireless

LightSquared, a wireless company that filed for bankruptcy in 2012, proposed a new restructuring plan that would give Dish Network Chairman Charlie Ergen 60 percent of the new equity in addition to $1 billion in junior debt. J.P. Morgan Chase, a LightSquared lender, would come away with 31.9 percent of the equity and a seat on the board of directors if the investment bank provides $189 million in funding. The restructuring plan is intended to raise between $750 million and $1 billion.

news_02_smallHarbinger Capital Partners’ Philip Falcone was the only party that did not support the restructuring plan. The investment firm used to have a majority stake in LightSquared, but a restructuring plan that would have allowed them to keep a stake in the company was rejected.

“To satisfy Harbinger’s claims, $189 million is being set aside in an escrow account, funded by J.P. Morgan, until those claims are settled,” reports The Wall Street Journal.

LightSquared plans to submit its restricting plan to the bankruptcy court this week. The proposal still has a long way to go until it can be approved. All of the previous proposals, including some which involved negotiations with the bankruptcy judges, have been shot down.

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