Milbank’s client, LightSquared (a provider of wholesale mobile satellite communication services and license holder or lessee of various US and Canadian spectrum assets) obtained confirmation of a plan of reorganization (the “Plan”), paving the way for emergence from chapter 11 after almost three years in bankruptcy. LightSquared filed its chapter 11 cases on May 14, 2012, in the US Bankruptcy Court for the Southern District of New York, after failed attempts to reach an out-of-court agreement with its creditors that would allow it to pursue a resolution of certain disputes pending before the Federal Communications Commission while forbearing on its obligations under its respective credit agreements. Milbank represented LightSquared in all aspects of its restructuring, which included, among other things, extensive litigation and negotiation with stakeholders, numerous rounds of debtor-in-possession financings, and a seven plus-month mediation process.
The confirmation hearing commenced on March 9, 2015 before the Honorable Shelley C. Chapman of the US Bankruptcy Court for the Southern District of New York, and included eight days of contested proceedings, during which Milbank attorneys litigated LightSquared’s case for confirmation in court while simultaneously negotiating with various stakeholders. Due to these parallel efforts, LightSquared was able to consensually resolve all but one outstanding objection by the time the Court issued its decision confirming the Plan, allowing for an almost fully consensual resolution to one of the most complex and contentious restructurings in recent history.
LightSquared pursued confirmation of the Plan in partnership with a group of investors, including Fortress Credit Opportunities Advisors LLC, Centerbridge Partners, L.P., JPMorgan Chase & Co., and Harbinger Capital Partners LLC. Among other features, the Plan provides for the full satisfaction of all claims and preferred equity interests, over $3 billion in aggregate new-money debt and equity investments, and the installation of a world-class board of directors chaired by former Verizon Chairman and CEO Ivan Seidenberg.
Milbank continues to represent LightSquared in its efforts to consummate the Plan and finalize its exit from chapter 11. The Plan is expected to become effective later this year.
Milbank’s team representing LightSquared is led by New York Financial Restructuring partner Matthew Barr and includes partners Michael Hirschfeld, Alan Stone (Litigation, NY); Andrew Leblanc (Financial Restructuring and Litigation, DC); Aaron Renenger (Litigation, DC); Roland Hlawaty (Corporate, NY); James Ball (Global Securities, NY); James Pascale (Transportation & Space Finance, NY); and Russ Kestenbaum (Tax, NY); special counsel Drew Batkin (Tax, NY); and associates Steven Szanzer, Karen Gartenberg, Jonathan Ostrzega, Matthew Brod, David Schiff, Brennan Gumerove, and Brian Zucco (Financial Restructuring, NY); Aluyah Imoisili (Litigation, LA); Luke Thara (Litigation, NY); Erin Culbertson, James Burke, Monica DiFonzo, Erin Dexter, and Jeremy Wong (Litigation, DC), Aaron Stine (Corporate, NY); and William Corso (Transportation & Space Finance, NY).
