LightSquared asks court not to re-open trial with Ergen

Mon Mar 24, 2014 8:39pm EDT
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By Dena Aubin

NEW YORK (Reuters) - Broadband company LightSquared has urged a judge not to re-open a trial that ended last week over Dish Network Corp Chairman Charles Ergen's purchase of LightSquared debt, saying it would delay resolution of LightSquared's bankruptcy proceedings.

In a court filing on Friday, lawyers for LightSquared said the company should not have to bear the "tremendous cost" in money, time and distraction and have its efforts to emerge from bankruptcy imperiled.

LightSquared, which filed for bankruptcy in 2012, presented closing arguments last week in a trial over whether Ergen improperly acquired $1 billion of the company's debt to take control of its wireless rights.

U.S. Bankruptcy Judge Shelley Chapman has not yet issued a ruling in the trial, which ended on Monday.

At a hearing on Wednesday, Chapman said she had received a letter the night before that led her to question the integrity of the trial record and that a discussion was needed about reopening it.

The trial revolved around whether Ergen held up the closing of some of his debt purchases to conceal his identity in order to acquire a controlling stake of LightSquared's debt.

During closing arguments, Ergen's lawyer, Rachel Strickland, said it was Jefferies LLC, the broker on the transactions, that held up the trades by imposing a moratorium until documentation issues were sorted out.

In Friday's filing, lawyers for LightSquared said that Ergen's lawyers had forwarded to the court on March 18 email communications concerning the purported Jefferies moratorium.   Continued...

Dish Network Chairman Charlie Ergen (L) arrives at the U.S. Bankruptcy Court in Manhattan in New York January 13, 2014. REUTERS/Brendan McDermid