Icahn and LightSquared
Before too much more gets posted here, it would be wise to go read what is being said (and has been said for a while now) concerning Carl Icahn and his relationship to LightSquared. Those of you in the know are aware that Mr. Icahn has "connections", and can make or break whole companies and even destabilize government financial institutions with not much more than a phone call - often reaping enormous profits by doing so. So any complaints by LightSquared about being mistreated during this whole debacle may in fact have some merit.
Yes, Icahn is a corporate raider. It looks like he bought around $300M in debt...which isn't much BTW If Icahn is serious about picking up the pieces of LightSquared and pushing things along (which I doubt that he really is), the odds of something happening increase. However, I doubt Icahn is actually interested in building out a network. Rather, I imagine he's more interested in parting out the carcass as much as possible. He may get his wish as a bond holder
|reply to scross |
Ichan smelling blood in the water and coming in like the shark he is had little do with the FCC rejection. Falcone made a bad bet, Ichan makes a business out of chopping up injured companies.
I'm sure Ichan like everyone else in the world knew after the GPS test showed the only solution was to replace every GPS system in the world and kiss commercial high precision GPS goodbye that he put two and two together and bought some bonds so he could raid the company when their operating capital was gone and they couldn't service the bonds. The Light-squared spectrum holdings even as satellite based frequencies are still quite valuable and are probably worth even more than what Falcone paid for them given the need for spectrum that Viasat, Hughes, Dish and DirecTV have. Ichan likely sees the ability to get full payback plus a hefty profit if he can drag light-squared into bankruptcy and gain control.
Implying Ichan had any play on the FCC rejection is just fantasy, with the military and high precision GPS makers (like John Deere, who personally have a dozen senators and representatives in their backfield) mobilized to opposed the waiver it was just a matter of time till the FCC issued a finding that Falcone hadn't met the terms of the waiver.