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LightSquared creditors ask to switch votes to accept proposed plan
By Kali Hays
New York, March 19 – LightSquared Inc. creditors Providence TMT Special Situations Fund LP, Providence TMT Debt Opportunity Fund II LP, Centaurus Capital LP and Keith Holst asked the U.S. Bankruptcy Court for the Southern District of New York for permission to change their votes on the company’s amended plan of reorganization, according to separate Wednesday motions.
In light of negotiated modifications, the creditors all said they want to change their votes to accepting the plan from rejecting the plan.
The Providence funds said their treatment under the plan has improved and “on the whole, these negotiated arrangements rendered the plan as modified acceptable to the Providence funds,” according to a motion.
As previously reported, Providence also agreed to invest $115 million of new funds as part of LightSquared’s second-lien exit facility.
Specifically, the Providence funds said they would purchase new LightSquared common interests and new LightSquared series B preferred interests offered under the company’s plan of reorganization for a total purchase price of $115 million.
The common interests to be purchased under the Providence commitment would represent 34.3% of LightSquared’s new common interests, and the new series B preferred interests would have an original liquidation preference of $89.5 million.
The motion will be considered during the company’s ongoing confirmation trial, which began on March 9.
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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