This is a slap in the face.
Someone inside Lightsquared’s board room WSJ that a bunch of the company’s board members want Phil Falcone to step out of the limelight and off the board to make way for new execs.
If you haven’t been paying to this story in a while, it’s basically like this — Falcone is sticking his guns and still wants to make Lightsquared, his billion dollar telecom start-up, work (He’s invested billions of his own fortune in it).
Investors like private equity legend Carl Icahn are way less optimistic since the FCC and other government regulators are still against the project.
If Mr. Falcone doesn’t agree to eventually leave LightSquared’s board and make way for new executives and directors at the wireless communications firm, lenders are likely to balk and the company could end up filing for bankruptcy protection, they (the sources) said.
The discussions remain fluid, and the exact contours of a deal and when and how lenders want Mr. Falcone to step aside are in flux, the people said. Not all of LightSquared lenders want Mr. Falcone to step back, one of these people said.
Looks like we’re going to see some blood here, people.