NEW YORK (TheStreet) A day after LightSquared opted not to hold a scheduled bankruptcy auction, Philip Falcone's Harbinger Capital Partners filed a new plan to reorganize the would-be wireless broadband provider.
Harbinger asserts that the plan values LightSquared at $5.654 billion, including $2.587 billion in equity value. And Falcone's firm claims there are billions more available in legal claims.
The hedge fund said that Melody Capital Advisors LLC and other lenders have agreed to provide an additional $1.45 billion in exit financing.
The new plan does not, however, address a bid that Centerbridge Partners has reportedly put forward to buy assets for $3.3 billion, or $5 billion including assumed obligations.
LightSquared had scheduled an auction on Wednesday, Dec. 11. The debtor filed a terse statement with the U.S. Bankruptcy Court for the Southern District of New York, which said that a special committee of its board decided not to hold the auction after LightSquared deemed none of the submitted bids "successful."
Even if Centerbridge's $3.3 billion bid were accepted, Wells Fargo Securities LLC analyst Marci Ryvicker suggested that the Light Squared "soap opera" is not over, in a Thursday, Dec. 12, note.
An affiliate of Charlie Ergen's Dish Network (DISH) had submitted a $2.22 billion offer for LightSquared's prime spectrum portfolio.
"There is still a case to be made for DISH to come to the table and provide a higher price (we remind you that DISH had $10.4B of cash and equivalents at 9/30)," Ryvicker wrote.
"Even if Centerbridge is the 'victor', here, we don't see how they monetize the Lightsquared spectrum without involving Charlie in some way," she added. "Particularly because we just don't believe that Lightsquared spectrum can be monetized as efficiently by Centerbridge as it can be by DISH."