Philip Falcone, the chief executive of principal LightSquared investor Harbinger Capital, may step down as the public face of the company, according to a report from the Wall Street Journal.
Unnamed “people familiar with the negotiations” told the newspaper that Falcone’s agreement with the company’s board may convince LightSquared’s lenders to approve an extension of a debt-term violations waiver, which is set to expire on Monday morning.
LightSquared declined to comment on the report. Harbinger Capital could not immediately be reached for comment.
Falcone had previously said that he would consider bankruptcy as an option for the company. Earlier this month, the Federal Communications Commission put the brakes on LightSquared’s plan for a mobile and satellite network because of its interference with global-positioning satellites, The Washington Post reported.
In an interview with The Post earlier this month, Falcone accused the agency of being unduly influenced by special interests and said that LightSquared’s network could be fixed. The FCC said it would make its decision, “based on the record and guided by law, engineering and settled policies that seek to remove regulatory barriers to broadband while avoiding harmful interference.”
According to the Journal report on Monday, Falcone and the LightSquared board have not yet come to a final agreement, and a bankruptcy filing is still a possibility.