ADVFN - Advanced Financial Network.
HOME» NYSE » A » T Stock Price » T Stock News

Att Share News

 At&t Stock Price
T Stock Price
 At&t Stock Chart
T Stock Chart
 At&t Stock News
T Stock News
 At&t Company Information
T Company Information
 At&t Stock Trades
T Stock Trades

LightSquared Judge To Rule Later On Restricting Debt Trading

By Joseph Checkler NEW YORK -(Dow Jones)- A judge on Tuesday heard heated arguments about whether to restrict investors from trading the debt of LightSquared Inc., with the company's lenders arguing that they don't want to be handcuffed into holding securities that could dwindle in value. Judge Shelley C. Chapman of U.S. Bankruptcy Court in Manhattan told lawyers she will rule later on whether to restrict the trading of the company's debt, a move that LightSquared said could help it preserve valuable tax benefits for its estate. White & Case LLP's Glenn M. Kurtz, a lawyer for a group of lenders owed $1.7 billion, questioned LightSquared Chief Financial Officer Marc R. Montagner about the role of Harbinger Capital Partners and the man who runs its hedge funds, Phil Falcone. Kurtz tried to prove the point that it was nearly impossible for enough debt be converted into equity for control of the company to be changed, which would possibly prevent LightSquared from benefiting from the tax breaks. LightSquared's requested restrictions would force debtholders to sell down their stakes if they build too high a position. The hearing became testy at times, with Chapman at one point suggesting a question Kurtz could ask and then telling him, "Mr. Kurtz, I've actually been doing this a couple of years." She later took issue with Kurtz not asking for permission to approach the bench when sending one of his associates to deliver her a piece of evidence. Lawyers for LightSquared and majority owner Harbinger argued that a change in ownership of the company could wipe out as much as $1.5 billion in tax breaks the company could currently be entitled to. Such breaks allow a company to offset tax liabilities against future income, but a change of control could change that. Ultimately, many of Montagner's answers ended up being, "I cannot predict the future." "I think that the testimony has been largely repetitive for some time now," Chapman said at one point. LightSquared and Harbinger lawyers argued that the burden was on the lenders to prove why they should be allowed to freely trade the debt, since the tax benefits could have so much value for the estate. Chapman asked Milbank, Tweed, Hadley & McCloy LLP's Matthew S. Barr, a LightSquared lawyer, if she should turn down the motion if she thought the prices of the debt would go down based on her decision. Barr responded that because the tax benefits would be for the bankruptcy estate, it shouldn't matter and she should approve the motion. Blackstone Group LP (BX) Senior Managing Director Steven Zelin, a witness called by the lenders, testified that a restriction of the trading would lower the value of LightSquared debt, a detriment to those who hold it now. "I believe it's not necessary," Zelin said of the attempt to restrict trading. A lawyer for LightSquared grilled Zelin on whether he could pinpoint the impact of restricted trading on the prices of the debt. Zelin said he couldn't, because trading can be impacted by many factors. LightSquared filed for bankruptcy earlier this month after failing to come to an agreement with lenders to restructure the debt. The company owes $320 million to a group whose loans are secured by the company's leases on wireless spectrum, and equity interest in that spectrum. But its bigger obligation is the $1.7 billion in loans secured by the company's assets. At the company's first hearing on May 15, White & Case's Thomas E. Lauria, another lawyer for the lenders, said issues with the Federal Communications Commission that have delayed the company's rollout of a nationwide satellite system could take "years to resolve," and that he was concerned the company could burn through its nearly $200 million in cash during that time. Falcone and Harbinger own most of LightSquared's stock, investing billions of dollars into a venture that sought to compete with communications heavyweights like AT&T Inc. (T) and Verizon Wireless. But efforts to build a national network stalled as federal regulators began to raise issues involving whether LightSquared's network could interfere with global positioning services. (Dow Jones Daily Bankruptcy Review covers news about distressed companies and those under bankruptcy protection. Go to http://dbr.dowjones.com) -Write to Joseph Checkler at joseph.checkler@dowjones.com. Follow him on Twitter at @JoeCheckler (Jacqueline Palank in Washington contributed to this article.)

Stock News for Att (T)
DateTimeHeadline
10/01/201603:03:00AT&T to Stop Collecting Customers' Internet Visits -- WSJ
09/30/201617:40:00AT&T to End Data-Collection Program for Broadband Customers
09/30/201617:16:00AT&T to End Data-Collection Program for Broadband Customers
09/30/201612:56:00AT&T Declares Quarterly Dividend
09/29/201618:01:00AT&T CEO Calls for Dialogue on Racial Tensions: 'Tolerance Is...
09/29/201616:47:00AT&T, CWA Reach Three Tentative Agreements Covering Former DIRECTV...
09/28/201614:37:00AUDIENCE Network and Primary Wave Entertainment Cast Golden Globe®...
09/28/201611:40:00Samsung Looking Into Complaints About Replacement Galaxy 7s
09/27/201609:30:00AT&T and Applied Information to Bring Smart Cities Technology...
09/27/201609:30:00AT&T Smart Cities Welcomes Spruce Finance as Newest Smart Grid...
09/26/201603:01:00San Francisco's Historic Past Meets Its Future At AT&T's 1 Powell...
09/23/201609:30:00AT&T to Release Third-Quarter 2016 Earnings October 25
09/21/201610:30:00AT&T AdWorks Expands Cross-Screen Addressable Ad Offering
09/20/201619:30:00Samsung Says Replacement Galaxy Note 7s Will Be Available Wednesday
09/20/201619:30:00AT&T to Test Broadband Over Power Lines
09/20/201619:13:00AT&T to Test Broadband Over Power Lines
09/20/201614:00:00AT&T Labs' Project AirGig Nears First Field Trials for Ultra-Fast...
09/20/201612:00:00Henry County Commerce Park Designated as AT&T Fiber Ready
09/17/201603:02:00Robert E. Allen -- WSJ
09/16/201613:14:00Robert Allen Struggled to Steer AT&T Through a Treacherous Era

Att and other New York Stock Exchange stock quotes are delayed by at least 20 minutes.
All other stock price data is delayed by at least 15 minutes unless otherwise stated.
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions
Contact Us | Copyright 1999-2015 ADVFN PLC. | Privacy Policy | Investment Warning | Data accreditations | Investor Relations

ADVFNADVFN ItalyADVFN GermanyADVFN FranceADVFN BrazilADVFN JapanADVFN UKADVFN US noad