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LightSquared 'seriously considering' voluntary bankruptcy in wake of failed network plans

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Philip Falcone revealed in an interview today that he is considering filing a voluntary bankruptcy for LightSquared, the failed telecom venture whose ambitions to build out a new LTE network were thwarted by the FCC.

LightSquared Logo 600
LightSquared Logo 600

Things have been looking grim for LightSquared since its ambitions to build a new LTE network were thwarted by the FCC, and now the hedge fund manager behind the company says he is considering a voluntary bankruptcy. "There are arguments that we would be better off in bankruptcy than not," Philip Falcone said, according to Bloomberg. "LightSquared, if I have to, I'll put it into bankruptcy. I don't care." He continued to say that a bankruptcy would provide the company time to deal with its creditors, and would not necessarily be disastrous for LightSquared's investors as the spectrum it owns still has value unto itself. Whatever the move, it's clear that the company needs to take action soon; Sprint called off its deal with LightSquared last month, just weeks after the company announced plans to lay off almost half of its workforce.