Falcone mulls voluntary bankruptcy for LightSquared [Reuters]

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Hedge fund manager Philip Falcone told Reuters in an April 4 interview that he is “seriously considering” filing for bankruptcy for LightSquared, the struggling satellite mobile broadband startup that had its provisional operating license revoked in February after tests showed that its terrestrial network would interfere with GPS signals.

“Falcone said a bankruptcy is one of several options he is considering as he tries to find a way to salvage the company, which reported a $427 million net loss during the first nine months of 2011, and keep its creditors at bay.

“He said a bankruptcy would allow the company time to find a way to deal with communications interference issues that have arisen with the planned buildout of a nationwide wireless broadband network.

“Falcone said a bankruptcy would not necessarily wipe out the equity holders of LightSquared because the spectrum it owns retains value.”

Falcone’s Harbinger Capital Partners is the majority owner of Reston, Va.-based LightSquared.

 

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