Katherine Burton, Max Abelson, and Saijel Kishan at Bloomberg BusinessWeek have a monster new profile on Phil Falcone, the collapse of his hedge fund Harbinger Capital and the trouble at his satellite wireless venture Lighsquared.
The once high-flying hedge funder had some choice words for all the troubles that have plagued the wireless network service.
“What’s happening is quite frankly outrageous, it’s un- American, it’s unfair… You mandate me to build out a network as a condition to buying the company, so I go and buy the company. And now you’re not letting me build out the network?”
Falcone said he is ready to take the situation to court on the premise that the US government undermined his investment in Lightsquared.
Lightsquared’s future has looked dim ever since the FCC blocked the business from pursuing wholesale operations due to its interference with GPS systems, the resignation of its CEO and the firing of nearly 45% of the company’s workforce. There is also a possibility that the company may default on its loans by the end of this month.
Falcone himself has invested nearly $3 billion in Lightsquared through his hedge fund Harbinger Capital, and the firm has dropped from its 2008 high of nearly $26 billion in assets under management to nearly $3 billion following losses and withdrawals, according to Businessweek.
Whatever happens, Falcone seems to be ready to battle it out to the end. He told Businessweek he will put Lightsquared into bankruptcy in order to retain control, saying “this is pounding every single day and not giving up… I tend to be pretty aggressive.”
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