Fortress backs LightSquared financing plan


telecoms6_sqPrivate equity firm Fortress Investment Group has agreed to back a bankruptcy exit plan for wireless communication group LightSquared.

Under the terms of the deal, LightSquared would secure loans totaling $2.75bn and $1.25bn in equity from Fortress, Melody Capital Advisors, Harbinger Capital Partners and JP Morgan Chase, the company said in a court filing, according to Reuters.

LightSquared was previously looking to sell its assets, but cancelled the plan after receiving only one bid from Dish that valued the business at $2.2bn.

The new plan must be approved by the Federal Communications Commission, which could take many months, said the report.

Earlier this month private equity firm Centerbridge Partners pulled out of a $3.3bn deal for LightSquared.

It was previously reported that Fortress withdrew its offer for the business in favour of throwing in with Centerbridge as a minority investor.

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