Bankruptcy Court Approves LightSquared Reorganization Plan

The U.S. Bankruptcy Court in New York City approved LightSquared’s reorganization plan Thursday, allowing the company to move forward with its plan to end its Chapter 11 bankruptcy trial and repay its top creditors. The plan, presented to Judge Shelley Chapman earlier this month, means certain creditors will received $400 million in cash, with $320 million going to SPSO, which is controlled by Dish Network CEO Charles Ergen. Any notes offered to creditors will be paid off over a five-year period. LightSquared would leave bankruptcy under the control of Centerbridge Partners and Fortress Investment Group (see 1503100066). LightSquared CEO Doug Smith said in a statement: “This has been a long journey, and today's ruling will allow us to emerge from Chapter 11 well-capitalized and better positioned to achieve our goals.”