Former LightSquared CEO Petitions 2nd Circuit for Chapter 11 Rehearing
The 2nd Circuit U.S. Court of Appeals failed to follow its own 2011 In re DBSD ruling on the Bankruptcy Code when it approved LightSquared's Chapter 11 bankruptcy reorganization plan, former CEO Sanjiv Ahuja said in a petition (in Pacer)…
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for panel rehearing and rehearing en banc filed Wednesday with the court. The 2nd Circuit rejected an appeal by Ahuja, who was a major stakeholder in the satellite company (see 1603230021) and who complained previously and again in the petition that majority shareholder Harbinger Capital was made more than whole. In his petition, Ahuja said, "Self-dealing and manipulation of the reorganization process by controlling shareholders ... was exactly the abuse that DBSD ... sought to curb." In a statement Thursday, LightSquared -- now Ligado -- said it's "confident the court will stand by its decision."