LightSquared’s hedge fund manager considers bankruptcy

Falcone is a part of Harbinger Capital Partners, which is the majority owner of the struggling startup. Coming off a $427 million net loss in the first 9 months of 2011, Falcone is looking at several options to salvage the company. He believes that LightSquared’s spectrum assets still retain significant value; therefore a bankruptcy would not definitively wipe out the equity holders.
Overall, the outlook looks extremely bleak for LightSquared. While anything is possible, chances are LightSquared will be a venture of the past very soon.
source: Reuters