Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  Equities  >  Nasdaq  >  DISH Network Corporation    DISH

DISH NETWORK CORPORATION (DISH)
Mes dernières consult.
Most popular
  Report  
SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsofficial PublicationsSector newsTweets

DISH Network : Falcone says suppressing Ergen's debt is key to LightSquared restructuring

share with twitter share with LinkedIn share with facebook
share via e-mail
0
04/01/2014 | 01:46am CEST
Falcone, the head of Harbinger Capital Partners, which owns LightSquared, arrives at the U.S. Bankruptcy Court in Manhattan

NEW YORK (Reuters) - Investor Phil Falcone, whose Harbinger Capital Partners owns bankrupt wireless company LightSquared, on Monday said he always intended to cut the debt claims of LightSquared's largest creditor, Dish Network Corp Chairman Charlie Ergen.

"I don't think Charlie should have been in the capital structure," Falcone said during testimony in U.S. Bankruptcy Court in Manhattan, in the third week of hearings in which LightSquared is seeking court approval of its plan to exit bankruptcy and repay creditors.

The plan would pay most lenders in cash while paying Ergen in the form of a long-term note, terms to which Ergen has objected.

Under intense questioning from Ergen's attorneys, Falcone acknowledged that he believed subordinating Ergen's claims would allow Harbinger to retain equity in a post-bankruptcy LightSquared.

Treating Ergen's $1.1 billion claim differently from other creditors' claims would decrease the amount of new equity LightSquared would need to raise to a fund a bankruptcy exit, preserving more for Harbinger, according to Falcone. The plan would retain a roughly 30 percent equity stake for Harbinger.

LightSquared filed for Chapter 11 in 2012, when the Federal Communications Commission revoked its license to build a massive planned wireless network over concerns it could interfere with GPS systems. Ergen later acquired a big enough chunk of the company's senior loan that he could essentially block any restructuring plan he disagreed with.

LightSquared and Harbinger believe they can subordinate Ergen's claim because, according to them, he acquired his stake illegally, violating a credit agreement barring competitors like Dish from holding LightSquared debt.

In a separate and still-pending lawsuit, LightSquared alleges Ergen was acting for Dish when he bought the debt, with an eye toward setting the stage for a Dish takeover. Ergen has said from the outset the purchases were solely for his personal portfolio.

A Dish unit did make a $2.2 billion offer for LightSquared's valuable spectrum, but dropped the bid in January.

Monday marked the end of witness testimony in weeks of hearings, and it is now up to Judge Shelley Chapman to assess Ergen's motivations for accumulating debt. Whether Chapman deems Ergen to have acted improperly will be the key factor in whether she approves the bankruptcy exit plan.

If Chapman finds that Ergen did not act improperly, LightSquared could find itself in a tight negotiating spot, as Falcone conceded that no alternative restructuring plan is on the table right now.

Chapman's decision is expected to take several weeks, with LightSquared and Ergen planning to submit post-trial court briefs by May 2. But time is of the essence for LightSquared, which could run out of money by April 15, when its $33 million bankruptcy loan expires. LightSquared plans to address that issue in the coming days, its lawyer said on Monday.

Falcone said Harbinger initially wanted to disallow Ergen's claims entirely. But to facilitate a restructuring, he agreed to

support a deal premised on equity contributions from Fortress Investment Group and Melody Capital that would subordinate the claims behind those of other lenders.

An independent committee overseeing the restructuring has said it supports the move.

(Reporting by Billy Cheung; Writing by Nick Brown; Editing by Lisa Shumaker)

By Billy Cheung

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on DISH NETWORK CORPORATION
04/16DISH NETWORK : Don't Hang Up -- This Is Not a Scam -- WSJ
DJ
04/15DISH NETWORK : You May Be Eligible For a Cash Award -- No, Really, Wait, Don't H..
DJ
04/11DISH NETWORK : U.S. Patents Awarded to Inventors in Maryland (April 11)
AQ
04/11DISH NETWORK : U.S. Patents Awarded to Inventors in Virginia (April 11)
AQ
04/10DISH NETWORK : Alliance Group strengthens ISPs with broadband sales support, vid..
PR
04/10DISH NETWORK : The Greatest Adult Stars of All Time by Plausible Films Available..
AQ
04/10VIDEO : Tech solutions with Pflanz Electronics
AQ
04/10COMCAST : 'The Greatest Adult Stars of All Time' by Plausible Films Available on..
AQ
04/08DISH NETWORK : Successfully Trials "Next Gen" Broadcast Standard in Spectrum Co...
PU
04/04DISH NETWORK CORPORATION (NASDAQ : DISH) Files An 8-K Entry into a Material Defi..
AQ
More news
News from SeekingAlpha
04/24Industrials Enter The Earnings Spotlight, And Alphabet Sells Off (Wall Street.. 
04/24WALL STREET BREAKFAST : Industrial Earnings On The Radar 
04/24Net neutrality comes to an end 
04/20LONG DISH NETWORK : Undervalued Spectrum Implies Vast Upside 
04/11DOJ wrapping up case against AT&T/Time Warner with key witness 
Financials ($)
Sales 2018 13 755 M
EBIT 2018 1 790 M
Net income 2018 1 355 M
Debt 2018 12 205 M
Yield 2018 -
P/E ratio 2018 14,81
P/E ratio 2019 17,39
EV / Sales 2018 2,14x
EV / Sales 2019 2,17x
Capitalization 17 201 M
Chart DISH NETWORK CORPORATION
Duration : Period :
DISH Network Corporation Technical Analysis Chart | DISH | US25470M1099 | 4-Traders
Technical analysis trends DISH NETWORK CORPORATION
Short TermMid-TermLong Term
TrendsNeutralBearishBearish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 23
Average target price 64,2 $
Spread / Average Target 74%
EPS Revisions
Managers
NameTitle
W. Erik Carlson President & Chief Executive Officer
Charles William Ergen Chairman
John Swieringa Chief Operating Officer & Executive Vice President
Steven E. Swain Chief Financial Officer & Senior Vice President
Vivek Khemka Chief Technology Officer & Executive VP
Sector and Competitors
1st jan.Capitalization (M$)
DISH NETWORK CORPORATION-22.81%17 201
CHARTER COMMUNICATIONS INC-10.60%71 420
LIBERTY GLOBAL PLC-9.29%25 661
LIBERTY BROADBAND CORP-4.63%14 804
CYFROWY POLSAT SA0.32%4 676
CABLE ONE INC-0.91%3 996