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LightSquared Still Burning Through Cash
Has Spent $134 Million Since May Bankruptcy Filing
by Karl Bode 06:31PM Thursday Aug 23 2012
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.

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rradina

join:2000-08-08
Chesterfield, MO

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.

tshirt
Premium,MVM
join:2004-07-11
Snohomish, WA
kudos:4
Reviews:
·Comcast

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.
rahvin112

join:2002-05-24
Sandy, UT

Re: Lightsquared...

They did not all know it was a shot in the dark. Falcone did I'm sure, but IMO he misled the other investors and that's why they all tried to throw him off the board even though he's the majority investor.
ssavoy
Premium
join:2007-08-16
Dallas, PA

Spectrum

Did this company ever think about spending money on a different spectrum instead of throwing money towards something with GPS interference issues? I can see them becoming another Clearwire.
xmarklive

join:2012-07-10
Lansing, MI

what else can it be used 4

im wondering why they were able to buy the spectrum in the first place if they cant use it

IowaCowboy
Iowa native
Premium
join:2010-10-16
Springfield, MA
Reviews:
·Verizon Broadban..
·Comcast

Liquidate LightSquared and be done with it

The fact their product compromises GPS (aka public safety) should be enough to justify the denial of the waiver. What if grandma dies because the ambulance company cannot locate the closest ambulance because LightSquared's signal rendered the GPS system useless. What if a family is killed in a home invasion because the local police department's GPS locators are knocked offline. What if transit police cannot locate a bus with an armed gunman that is taking passengers hostage. What if the fire department in a rural area cannot locate a burning house with children trapped inside. These are all good reasons to justify the FCC's denial of LightSquared's license and waiver.

Thank you FCC for putting public safety first and corporate profits (greed) second by denying LightSquared's waiver.

Their creditors should just force them into Chapter 7 (complete liquidation of assets and shutdown of business) bankruptcy.
--
I wish I still lived in Iowa; Everything there from rent and groceries to Cable TV is much cheaper in Iowa (especially with an overbuilder in town).

KrK
Heavy Artillery For The Little Guy
Premium
join:2000-01-17
Tulsa, OK

Re: Liquidate LightSquared and be done with it

They are trying to force the Government to swap their useless spectrum for valuable usable spectrum and thereby hit the lottery.

It's like a poker player who is down his life savings and yet is still gambling his last few dollars hoping to win it big.
--
"Fascism should more properly be called corporatism because it is the merger of state and corporate power." -- Benito Mussolini

N3OGH
Yo Soy Col. "Bat" Guano
Premium
join:2003-11-11
Philly burbs
kudos:2

1 recommendation

Re: Liquidate LightSquared and be done with it

LightSquared = doomed...

Mother F^&king doomed.....

FFH
Premium
join:2002-03-03
Tavistock NJ
kudos:5
said by IowaCowboy:

Thank you FCC for putting public safety first and corporate profits (greed) second by denying LightSquared's waiver.

I wouldn't give the FCC much credit here. They were greasing the skids for a LightSquared waiver until a huge number of other industries and government agencies screamed bloody murder over the FCC's plans to OK Lightsquared LTE. They did finally fall in line because the White House saw a huge turkey being dumped on the WH lawn and Obama gave the FCC Chairman his marching orders.
--
»www.mittromney.com/s/repeal-and-···bamacare
»www.mittromney.com/issues/health-care
rahvin112

join:2002-05-24
Sandy, UT

Re: Liquidate LightSquared and be done with it

Nice history rewrite. The FCC gave them a waiver to prove they could mitigate the interference. They didn't prove it so the waiver was taken away. Falcone got the testing waiver in part because of his connections (and mostly because it's the right thing to do, because if he was right that they had developed technology to mitigate the interference it would be foolish not to let him try to prove it), those include the Obama administration and a dozen key congresscritters who are about equal numbers of democrat and republican. It was those congresscritters who were writing letters and insisting the FCC grant the waiver.

Because if there is one thing that's bipartisan in Congress it's corruption. Only a fool would lay the entire blame on a the president when you have more than a dozen senators and representatives writing letters every other week to the FCC. And the same fool would argue that the only reason the waiver continuation was denied was political.