LightSquared mediator: Parties agree to plan terms, minus SPSO/Ergen

By Caroline Salls

Pittsburgh, June 27 – LightSquared Inc. mediator Robert D. Drain reported Friday that mediation on the business terms of a Chapter 11 plan was “primarily successful” but that SP Special Opportunities LLC (SPSO) and Charles W. Ergen did not participate in good faith, according to a filing with the U.S. Bankruptcy Court for the Southern District of New York.

“With the exception of one party, all of the parties to the mediation have agreed on the key business terms of a Chapter 11 plan for the debtors that should be confirmable without the support of the one party, SPSO, which has not agreed,” Drain said in the memorandum.

Drain said SPSO/Ergen “wasted the parties’ and the mediator’s time and resources.”

According to the memorandum, the principal of SPSO/Ergen left the mediation on June 23 without the mediator’s permission.

Drain said he told counsel for SPSO/Ergen, who remained at that the session, that he would continue the mediation beyond its set end time if SPSO made a proposal by 5 p.m. on June 24, but that proposal was not made.

Drain said he is prepared to continue if the parties wish, but the global mediation directed by the mediation order has ended.

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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