Navigate this market better. Subscribe for FREE stock alerts and information.

Tuesday, February 4, 2014

LightSquared gets court approval on $33 million bankruptcy loan, (NASDAQ: DISH)

A bankruptcy judge on Tuesday approved a $33 million loan from a group that includes Dish Network Corp Chairman Charles Ergen, to keep wireless venture LightSquared afloat as it tries to hash out a bankruptcy exit plan. The deal, unveiled on Monday, was green-lighted by Judge Shelley Chapman at a hearing in U.S. Bankruptcy Court in Manhattan.LightSquared's equity owner, Phil Falcone's Harbinger Capital Partners, is fighting to keep control of the company in a messy Chapter 11. An investment vehicle owned by Ergen has bought up much of LightSquared's debt, while Dish offered and later withdrew a $2.2 billion offer to purchase the company's spectrum, an offer Harbinger did not accept.LightSquared, which had been on pace to run out of cash by March, needed a loan to be able to extend restructuring talks that could go past that.While LightSquared agreed to include the Ergen vehicle, which is its largest single creditor, in the loan, the sides remain at odds on the broader question of how LightSquared will restructure. The company right now faces three competing restructuring proposals - one backed by Harbinger and two others put forth by creditor groups - but has said it plans to engage creditors and work toward a consensual deal.

DISH Network Corporation is a pay-television (TV) provider, with approximately 13. Shares of DISH traded higher by 3.64% or $1.99/share to $56.59. In the past year, the shares have traded as low as $33.79 and as high as $58.55. On average, 2709240 shares of DISH exchange hands on a given day and today's volume is recorded at 2634409.