LightSquared - Bankruptcy - ReOrg Research, Inc.
More than two years and 10 months after LightSquared filed for bankruptcy protection, Judge Shelley Chapman confirmed its latest plan of reorganization, which pays off Charlie Ergen’s interests in cash and gives ownership of the remaining company to investors such as Centerbridge and Fortress. In her other major telecom bankruptcy, Judge Chapman also approved the sale of NII Holdings’ Mexican assets to Cingular this week. In RadioShack’s own contested bankruptcy, the company is fervently trying to push the Standard General purchase, but second lien lender Salus continues to contest that path, even promising to amend its competing bid to make it better than what’s currently on the table. Deciding the latest precedent setting make whole arguments, Judge Sontchi denied the EFIH first lien make whole in the Energy Future Holdings bankruptcy, ruling that EFIH’s bankruptcy filing was not an intentional default. Eike Batista’s bankrupt shipbuilder OSX Brasil requested to put various subsidiaries under bankruptcy protection in the Netherlands, while Residential Capital’s liquidating trust filed its expected suit against Equifirst, though with a higher OPB than anticipated.