LightSquared mediator announces SPSO/Ergen agreement on plan treatment

By Caroline Salls

Pittsburgh, July 14 – LightSquared Inc. mediator Robert D. Drain said SP Special Opportunities LLC (SPSO) and Charles W. Ergen reached an agreement with company sponsors on the terms of SPSO/Ergen’s treatment under a Chapter 11 plan and new funding, according to a Monday filing with the U.S. Bankruptcy Court for the Southern District of New York.

As previously reported, Drain reported to the court on June 27 that mediation on the business terms of a LightSquared plan was “primarily successful” but that SPSO and Ergen did not participate in good faith.

“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 June memorandum.

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

The mediator said that he continued in his role to assist with the remaining open issues and that SPSO/Ergen concluded a good-faith negotiation and reached an agreement consistent with the plan terms previously negotiated by the other parties.

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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