Really? After all the show downs in the LightSquared drama — Falcone v. GPS industry, Falcone v. Chuck Grassley, Falcone v. the FCC — it’s coming down to this?
Falcone v. Carl Icahn.
Falcone’s billion dollar telecom start-up, LightSquared, is on death’s door. The spectrum it owns interferes with GPS signals already in existence (there’s debate as to who’s fault that is) and that means regulators (the FCC, namely) are not giving it the go-ahead.
The NY Post is reporting that Falcone has decided to never say die. He has, after all, invest $2.1 billion of his own cash into the project. However, the company’s creditors want to call it a day — that means declaring bankruptcy. For them, that would mean greater equity stakes and more say as to what happens the the company.
One of those creditors is Carl Icahn.
‘The deadline for creditors to decide is fast approaching. Icahn and other owners of LightSquared’s $1.6 billion loan due 2014 have given the company until the end of April before they decide whether to put LightSquared into default for breaching some loan covenants tied to its customer contracts.
In other words: Time is running out.