LightSquared: SP Special Opportunities objects to disclosure statement

By Lisa Kerner

Charlotte, N.C., Feb. 21 - SP Special Opportunities, LLC (SPSO) filed an objection to the approval of LightSquared Inc.'s disclosure statement related to its third amended joint plan, according to a Feb. 21 filing with the U.S. Bankruptcy Court for the Southern District of New York.

"The defects in the plan are numerous and fatal to the plan's confirmation prospects, and cannot be overlooked simply because the plan reflects 'consensus' among various stakeholders who are contemplated to be paid in full, primarily at SPSO's expense," the filing stated.

According to SPSO's motion, the plan, among other things, "unfairly discriminates against SPSO, is not fair and equitable with respect to SPSO," is not feasible and "does not satisfy the best interests of creditors test."

In essence, the plan is "dead on arrival," according to the court filing.

LightSquared is a Reston, Va.-based wholesale-only 4G-LTE network integrated with satellite coverage. The company filed for bankruptcy on May 14, 2012 under Chapter 11 case number 12-12080.

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