In a release Thursday, Philip Falcone, manager of LightSquared majority investor Harbinger Capital Partners, said he is “seriously considering” recommending that the telecommunications firm file for Chapter 11 bankruptcy.
“While no decision has yet been made, the rationale behind a voluntary filing would be to give us the necessary time to continue with our vision, build the network and protect the company from creditors who are more interested in a quick flip,” Falcone said in a statement Thursday.
The investor first raised the option in an interview with Bloomberg Wednesday, saying that he’d would prefer not to have LightSquared declare bankruptcy, and would like to work out a spectrum swap with the government or develop signal-filtering technology instead.
Still, it’s clear from his comments that he would be open to using the time a Chapter 11 bankruptcy affords the company to solidify the LightSquared’s next moves.
The firm’s plans for a broadband wireless network were thrown off track after the Federal Communications Commission decided to block the service. The decision came after lawmakers and others raised concerns about how the proposed network would interfere with global-positioning satellites.
The company has filed to oppose the FCC’s proposal to stop its network.