LightSquared Goes Bankrupt After Network Plans Are Scrapped
In September it was reported that White House officials pressured a four-star Air Force General to change testimony to the benefit of a top Democratic donor, Philip Falcone.
Gen. William Shelton said the White House tried to pressure him to change his testimony to make it more favorable to Lightsquared, a company tied to Democratic donor Phil Falcone. LightSquared planned to offer wholesale national mobile LTE broadband WiFi for companies such as VoX Communications among others. And the White House was pressuring generals in the Air Force to give favorable testimony on the company.
Today, LightSquared filed for Chapter 11.
LightSquared, the troubled wireless communications venture backed by hedge-fund manager Philip Falcone, today filed for protection from creditors under Chapter 11 of the Federal Bankruptcy Code. The filing was made in Federal court in lower Manhattan.
The filing was not a big surprise. The New York Times notes that bondholders had given LightSquared a deadline of 5 p.m. Monday to come to an agreement about restructuring the company’s debt.
The Wall Street Journal and others note that the company reported assets and debts each exceeding $1 billion.
The company had planned to build a high-speed wireless broadband network, but was derailed by concerns that the service would interfere with global positioning system transmissions.
LightSquared needed the administration to pull some strings but they got caught.
Now the company is bankrupt. It looks like all that campaign cash was for naught. Bummer.