LightSquared disclosure hearing pushed to Jan. 20 for SPSO discussions

By Kali Hays

New York, Jan. 15 – LightSquared Inc.’s hearing to approve the disclosure statement related to its proposed Chapter 11 plan of reorganization has been adjourned until Jan. 20.

During a brief hearing at the U.S. Bankruptcy Court for the Southern District of New York, representatives of the company said that it is still trying to negotiate a resolution to the objections of SP Special Opportunities, LLC (SPSO) and hopes to propose specific changes settling “two narrow SPSO issues.”

As previously reported, SPSO objected to the plan on Jan. 13, claiming that “a number of aspects of the plan are either confusing or inaccurately described,” and that “approval of the disclosure statement without revision would severely prejudice the rights of any party that did not negotiate or help draft the plan.”

LightSquared presented the disclosure statement after reaching a deal with equityholder Harbinger Capital Partners, LLC in December and expressed at the time that SPSO “would not be supportive of any proposal that did not result in SPSO obtaining ownership and control of the debtors’ assets.”

Company representatives said they expect the delay will move the plan confirmation hearing, set to begin on Feb 23, back by “roughly two weeks.”

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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