NEW YORK (The Deal) -- After nearly three years in Chapter 11 protection, Philip Falcone-backed LightSquared Inc. received court approval to exit bankruptcy on Thursday.

U.S. Bankruptcy Judge Shelley Chapman approved LightSquared's latest reorganization plan after the bankrupt wireless spectrum holding company reached settlements with Solus Alternative Asset Management LP and Cerberus Capital Management LP. The debtor had recently announced a deal with its largest creditor and frequent bête noire, Dish (DISH) - Get Report Network Corp. chairman Charlie Ergen.

Ergen, who has been amassing wireless spectrum through satellite TV operator Dish, has emerged as Falcone's greatest rival to take control of LightSquared. The Dish chairman invested personally in LightSquared secured loans.

LightSquared announced a deal in November that would have given Ergen 60% of the equity in the company but could not finalize the agreement.