Dish Network Corp. Chairman Charlie Ergen is again fighting with a group of hedge funds that hold LightSquared’s bank debt, this time over which side should be providing a short-term bankruptcy loan to keep LightSquared afloat.
In a Thursday filing with U.S. Bankruptcy Court in Manhattan, lawyers for Ergen’s SPSO Special Opportunities investment vehicle said the $33 million loan offer from the hedge funds to keep LightSquared afloat through April 15 is “inferior” to theirs.
Ergen’s loan, his lawyers said, “is not a coercive financing designed to benefit select parties in interest rather than the estate as a whole.” A lawyer for the hedge funds didn’t immediately respond to a request for comment.
