Phil Falcone founder of Harbinger Capital Partners and owner of LightSquared said he is considering putting the failed venture in bankruptcy after regulators de-railed the future of the company with concerns of possible GPS interference.
“There are arguments that we would be better off in bankruptcy than not,” Falcone said in an interview. “LightSquared, if I have to, I’ll put it into bankruptcy. I don’t care,” adding that he would maintain control of the Reston, Virginia-based company if it filed.
Lightsquared, backed by Falcone’s Harbinger Capital Partners hedge fund, is fighting the FCC by saying the agency’s testing was flawed. The FCC blocked LightSquared’s LTE network in February due to concerns surrounding interference with GPS systems.
Phil and his hedge fund Harbinger Capital Partners have invested $3 billion dollars in the failed venture. An astounding number for a venture who was promising to bring high-speed data for as many as 260 million users and under contract with Sprint to make it all possible.