Harbinger proposes changes to Chapter 11 plan for LightSquared case

By Caroline Salls

Pittsburgh, Dec. 17 - Harbinger Capital Partners, LLC is seeking court approval to make changes to the plan of reorganization it filed for LightSquared Inc.'s Chapter 11 bankruptcy case, according to a Tuesday filing with the U.S. Bankruptcy Court for the Southern District of New York.

Under the proposed changes, upon satisfaction of specified conditions, proceeds of additional financing would satisfy a portion, if not all, of pre-bankruptcy LP facility claims through the distribution of cash rather than entirely through the distribution of new notes.

In addition, claims filed by the Charles W. Ergen parties would be subordinated under the revised plan.

Harbinger said each and every stakeholder would receive the same or better treatment under the modified plan, with the possible exception of SP Special Opportunities LLC and its affiliates in connection with possible equitable subordination.

As a result, Harbinger said there is no need for resolicitation of plan votes.

LightSquared is a Reston, Va.-based wholesale-only 4G-LTE network integrated with satellite coverage. The company filed for bankruptcy on May 14, 2012 under Chapter 11 case number 12-12080.

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