Dish Network Chairman Charlie Ergen isn’t done with his hissy fit over wireless startup LightSquared.
On Tuesday, the bankrupt company, owned by hedge funder Phil Falcone, revealed a new restructuring proposal that would give 74 percent of its equity to an investor group that consists of JPMorgan, Cerberus Capital and buyout firm Fortress.
Falcone’s Harbinger Capital would get a 12.5 percent equity stake. Ergen, meanwhile, would be repaid on his $700 million debt investment in the form of $470 million in cash and $492 million in an unsecured note.
The judge overseeing the case had ordered that Ergen’s debt be subordinated after he was sued by LightSquared for secretly buying the debt, despite knowing that Dish was barred from owning it.
Ergen hasn’t signed off on the new plan, and there was no indication on Tuesday that he would.
Ergen’s lawyer, Rachel Strickland, told the judge she wants two trials: one to review the value of the new deal, as well as a full trial to review whether her client should be subordinated.
“Asking to delay and delay is not to the benefit of anybody but your client,” Judge Shelley Chapman said.