Private equity firm Centerbridge Partners has reportedly pulled out of a $3.3bn deal for bankrupt telecommunications business LightSquared.
The Wall Street Journal reported last week that Centerbridge had agreed the purchase, but now says the firm has scrapped the deal amid uncertainty over when federal regulators would allow the company to expand its wireless network.
LightSquared, which is backed by hedge fund manager Philip Falconer, has about $1.7bn of debt which Centerbridge would have had to subsume as part of the deal.
The company has been bankrupt since 2012 and is said to be battling to keep control of its valuable spectrum amid a takeover push by Dish Network, WSJ added.
It previously said Fortress Investment Group had withdrawn its own offer for the business in favour of throwing in with Centerbridge as a minority investor.
Copyright © 2013 AltAssets