Exclusive: Falcone mulls voluntary bankruptcy for LightSquared

Reuters Business News

4/4/2012 5:35:05 PM

 

NEW YORK (Reuters) - Hedge fund manager Philip Falcone said in an interview on Wednesday he is "seriously considering" filing a voluntary bankruptcy for LightSquared, the struggling telecom startup in which his Harbinger Capital Partners is the majority owner.

Falcone said a bankruptcy is one option he is considering as he tries to find a way to salvage the company and keep its creditors at bay.

He said a bankruptcy would allow the company time to find a way to deal with communications interference issues that have arisen with the planned buildout of a nationwide wireless broadband network.

Falcone said a bankruptcy would not necessarily wipe out the equity holders of LightSquared because the spectrum it owns retains value.

(Reporting By Matthew Goldstein)