LightSquared Goes Bankrupt After Network Plans Are Scrapped

In September it was reported that White House officials pressured a four-star Air Force General to change testimony to the benefit of a top Democratic donor, Philip Falcone.

Gen. William Shelton said the White House tried to pressure him to change his testimony to make it more favorable to Lightsquared, a company tied to Democratic donor Phil Falcone. LightSquared planned to offer wholesale national mobile LTE broadband WiFi for companies such as VoX Communications among others. And the White House was pressuring generals in the Air Force to give favorable testimony on the company.

Today, LightSquared filed for Chapter 11.

LightSquared, the troubled wireless communications venture backed by hedge-fund manager Philip Falcone, today filed for protection from creditors under Chapter 11 of the Federal Bankruptcy Code. The filing was made in Federal court in lower Manhattan.

The filing was not a big surprise. The New York Times notes that bondholders had given LightSquared a deadline of 5 p.m. Monday to come to an agreement about restructuring the company’s debt.

The Wall Street Journal and others note that the company reported assets and debts each exceeding $1 billion.

The company had planned to build a high-speed wireless broadband network, but was derailed by concerns that the service would interfere with global positioning system transmissions.

LightSquared needed the administration to pull some strings but they got caught.
Now the company is bankrupt. It looks like all that campaign cash was for naught. Bummer.

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  • Pingback: LightSquared Goes Bankrupt After Network Plans Are Scrapped|PolitifreakPolitifreak()

  • KornKing

    The campaign cash went for naught? Don’t worry, I’m sure they’ll figure something out.

  • Valerie

    This administration has a very bad record of ignoring the opinion of their own technical experts. They’ve given us government-by-waiver, and it hasn’t worked well. Government-by-waiver is a dustbin idea that needs to be returned to that location.

  • doc

    How could this happen, I thought The Real Good Speaker was behind this?…oh wait, I’m wrong, he’s just a “behind”.

  • jonnot

    Don’t forget that obumbles thought LightSquared was such a great company, he invested $100,000.00 of his own money. It just goes to show that even with the corrupt behind-the-scene machinations of the FCC and the attempts at distorting the Generals’ testimony, the bundler powerhouse still couldn’t get this one off the ground…and the whole thing collapsed around them.

  • Pingback: LightSquared Goes Bankrupt After Network Plans Are Scrapped()

  • MrGoodWench

    So how much was OScama’s commission ?

  • anti-bho

    “invested $100,000.00 of his own money.”

    which if it were closely investigated could possibly have been money from excess campaign funds, better known as his slush fund.
    guy named Edwards is now in deep s**t for the same (but years after the fact).

  • another example of crony socialism. politicans don’t make good choices when backing businesses, they never have to worry about making a profit. when they are in the red they just raise taxes. this is another example of why we must take our income back from the politicans.

  • The only reason it got scraped because they got caught..Obama helping international crooks like Soros make more billions to be use to destroy USA………

  • Taxpayer

    Yay! Score one for the good guys!

    The mere thought of our service men and women in danger from that company’s grab of military bandwidth made me nauseous.

  • Pingback: LightSquared Goes Bankrupt After Network Plans Are Scrapped | Born Conservative()

  • Patty
  • Patty


    HHS Sends $5.9 Million to Program Run by Obama Buddy

    The Department of Health and Human Services last week announced it had awarded a $5.9 million grant to a University of Chicago Medical Center program tied to Michelle Obama and run by Eric Whitaker, one of President Obama’s closest friends.

    The Urban Health Initiative, which received the award, was originally based on a smaller program launched during the last decade by Michelle Obama, who was an executive at the University of Chicago Medical Center before she departed to become first lady. The UHI is headed up by Obama basketball and golf buddy Whitaker, who has known the president since Obama’s days in law school and who also vacations with the first family.

    Obama senior adviser Valerie Jarrett also has ties to the UHI. Until resigning to go work at the White House, Jarrett was Chairman of the University of Chicago Medical Center Board of Trustees. And in 2007, a PR firm run by former senior White House adviser and Obama political guru David Axelrod provided provided public relations strategy advice to the UHI, according to the Washington Post.

  • Pingback: Lightsquared goes bankrupt « Newsbeat1()

  • Militant Catholic

    Are you saying that yet ANOTHER company has fallen to the Obama curse after being chosen as a model we could all base our own companies on?

  • Pingback: LightSquared Goes Bankrupt After Network Plans Are Scrapped | Liberal Whoppers()

  • Rich K

    Why do we bother wasting words about this pack of thieves anymore? Congress is obviously in cahoots with them as I have yet to see any subpeonas issued to anyone of import about ripping off the taxpayers. So, as usual,crime pays and politics is the best game in town.

  • Pingback: LightSquared bankrupt « Internet Scofflaw()

  • theBuckWheat

    The left love to scold the rest of us about “sustainability”, yet none of their schemes ever are sustainable, that us unless they have government to give them other people’s money or other special accommodations. Cronyism is just another aspect of living at the expense of others and this case the expense would have also included the severe degradation of our precious GPS system.

  • AD-RtR/OS!

    Rest assured, Axelrod cashed the check.
    Will the BK Court be able to pull those funds back?

    More popcorn!

  • RS

    Whoa, a reluctant Obama contributor goes broke after a deal falls through.

    Surely there is a really good story of betrayal after a “fair and square bribe” here.

    And I am sure Obama will NOT be returning the money.

  • Pingback: Good Riddance Lightsquared « YouViewed/editorial()

  • richard40

    This bankruptcy couldn’t have happened to a nicer set of people. They basically bribed the Obama admin to let them leech off of the GPS frequencies for free, while endangering every GPS user in the country. It might have worked except there were a few people in the military that still had enough integrity to not be bullied by Obama, and were willing to blow the whistle and say, no you wont screw up GPS for all of us in exchange for a scummy political bribe.

    All administrations have some cronyism, but this one has taken it to an entirely new level of scumminess. By the way, just saying everybody in DC is scum and therefore why bother is just another copout. The only solution is to constantly start throwing out the most scummy people (8 yrs back that was bush and congressional repubs, now Obama and congressional dems are even worse), until you get somebody that is slightly less scummy, and reward them, until somebody that is even less scummy comes along. And dont reward politicians on what handouts they can give you, but on things like being honest about the budget and the realistic limits of gov regulatory action, and not unfairly rewarding cronies, qualities where Obama is totally lacking.

    You also have to be willing to target scum in both parties. That is another thing I love about the Tea Party. They not only target the most corrupt dems in the general, but also take out sellout repubs in the primaries.

  • Pingback: Another Obama Taxpayer-Funded Company Going Belly Up: LightSquared Files for Bankruptcy Protection After Getting Shady $267 Million Loan in Stimulus Money (video) « Frugal Café Blog Zone()