Remember LightSquared? John Hayward of Human Events wrote about them and their connection to the Obama camp last September:
The new Obama scandal is huge, but it’s also nice and simple.
LightSquared is a satellite broadband company, based out of Virginia. It received heavy investments from a fund run by a big-money Democrat donor named Phillip Falcone, a billionaire who “became wealthy shorting subprime debt,” according to The Daily Beast.
The company’s biggest investors, according to the Huffington Post, include Obama donor and current U.S. ambassador to South Africa Donald Gips, Obama friend and investment manager George Haywood… and Barack Obama himself, who was “an early investor and came to the presidency a firm believer in expanding broadband.”
And the problem with their tech?
LightSquared has been trying to get a big 4G network going, but there’s a problem: its technology appears to interfere with military, aviation, and weather tracking satellite systems. The company’s technicians have been working on the problem, and in fact on Thursday they announced that they’ve got a solution, although rigorous testing will still have to be performed.
Well, they just filed for bankruptcy according to the Wall Street Journal:
LightSquared Inc. filed for Chapter 11 bankruptcy protection Monday, hours ahead of the expiration of a deal to keep hedge-fund manager Philip Falcone’s venture from defaulting on its debt.
LightSquared reported assets and debts each exceeding $1 billion, according to the petition it filed with the U.S. Bankruptcy Court in Manhattan.
Mr. Falcone told Harbinger Capital Partners investors Monday that Chapter 11 protection for LightSquared was the best option for the wireless venture and he vowed to carry out plans to build a nationwide high-speed mobile broadband network.
I guess you just can’t buy a good politician these days…actually, the problem is that they just won’t stay bought.