LightSquared opposing lender Solus pulls objections to plan, DIP loans

By Kali Hays

New York, March 26 – LightSquared Inc. lender and preferred unit holder Solus Alternative Asset Management LP has withdrawn its objections to LightSquared’s second amended plan, disclosure statement and debtor-in-possession financing, according to a Thursday notice filed with the U.S. Bankruptcy Court for the Southern District of New York.

As previously reported, Solus objected to the company’s plan and proposed a competing plan of reorganization for LightSquared’s Chapter 11 case at the end of February, claiming its plan was “more streamlined” and contained “more proportional outcomes.”

Solus subsequently entered into a plan support agreement with other LightSquared objectors Cerberus Capital Management, LP, Charles W. Ergen and Special Opportunities Holdings, LLC.

A withdrawal of Solus’ competing plan has yet to be announced.

A hearing on confirmation of LightSquared’s second amended plan resumed on March 26.

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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