LightSquared Still Burning Through Cash
Has Spent $134 Million Since May Bankruptcy Filing
With no product and no necessary FCC waiver to offer service, LightSquared and their planned LTE network are for all intents and purposes dead in the water
-- they just keep pretending otherwise. The company keeps engaging in last-ditch efforts to try and keep their idea afloat, though none of them have amounted to much of anything. Meanwhile, the company keeps burning through cash at a significant clip
, spending $53 million in July and $134.3 million since filing for bankruptcy in May. According to filings with the U.S. Bankruptcy Court in Manhattan, more than half of those payments have gone toward interest expenses related to LightSquared's debt.
Lightsquared... It isn't a public company, is it? If it's publicly traded, there should be an investigation of the board. They are frittering away any potential investor equity instead of just closing down, settling debts and returning whatever is left to shareholders. (They may already be underwater in that regard but...)
If they are funded by private investments/banks, I'm a bit less concerned but invariably the loss will still affect some fund where us commoners have 401k money.
If you don't think so, think about this dialog from Trading Places:
Randolph Duke: Good, William! Now, some of our clients are speculating that the price of gold will rise in the future. And we have other clients who are speculating that the price of gold will fall. They place their orders with us, and we buy or sell their gold for them.
Mortimer Duke: Tell him the good part.
Randolph Duke: The good part, William, is that, no matter whether our clients make money or lose money, Duke & Duke get the commissions.
Mortimer Duke: Well? What do you think, Valentine?
Billy Ray: Sounds to me like you guys a couple of bookies.
Randolph Duke: [chuckling, patting Billy Ray on the back] I told you he'd understand.
Re: Lightsquared... actually it is a private "limited partnership" that they had hoped to spinout once they had approval, but before they did anything expensive that would fail.
All the investment groups and creditors KNEW this was a shot in the dark, and guess what, they fired and hit the 99.99999% plus of near space that is empty.
Why the partners have dumped more cash into this sinking ship rather than swimming for shore is beyond me, at least bankruptcy might preserve some value from the actual assets (frequentcies, satellites, IP, etc) continuing outside bankruptcy is like trying to build a lifeboat with loose stacked bricks of cash, even less workable then the original idea.
| |N3OGHYo Soy Col. "Bat" GuanoPremium
Re: Liquidate LightSquared and be done with it LightSquared = doomed...
Mother F^&king doomed.....