LightSquared, which is owned by hedge fund manager Philip Falcone, filed for bankruptcy in May and will ask a judge to expand the time it has to make an exclusive reorganization filing without a rival plan being presented, until next Summer. LightSquared wants the FCC to change its license application so that it can use 5MHz of spectrum that doesn't interfere with GPS technology. It also wants the right to use another 5MHz that it would share with federal government workers. A rule-making petition asks LightSquared not to use its upper 10MHz of spectrum which was guilty of causing the problem with GPS receivers. LightSquared would still like the FCC to approve the use of that spectrum, but has agreed to wait for revised rules on terrestrial use of those frequencies.
hundreds of millions of dollars on the company and are being sued by securities regulators for a number of alleged violations including misappropriation of client money, bond price manipulation and favoritism of certain clients. Falcone says he is not guilty of the charges.
Last year, LightSquared received a conditional approval from the FCC to start up its network. The agency had to change its decision after the National Telecommunications and Information Administration concluded that its network interfered with GPS signals. The big disaster was the loss of a huge contract with Sprint.