updated 03:28 pm EDT, Mon May 14, 2012
LightSquared, the company that attempted to build out a nationwide 4G network, has filed for bankruptcy in a Manhattan court on Monday. The project was met with resistance from regulators, who argued that the proposed spectrum would interfere with GPS signals. The company was facing other troubles, with its chief Philip Falcone, stepping down at the end of April at the request of the company's shareholders.
The company listed debt and assets of over $1 billion each. Falcone's hedge fund, Harbinger Capital Partners, had nearly $3 billion invested in LightSquared and owned nearly 74 percent as of January 27.
LightSquared tried to save the company by attempting to use spectrum currently used and controlled by the US Department of Defense, though this never materialized.
The failed company listed Boeing Satellite Systems, who was owed $7.5 million, and Alcatel-Lucent, who was owed $7.3 million, as some of its largest creditors. [via Bloomberg]