This is the latest news in the LightSquared case. I have been getting a lot of questions about the events leading up to it, including what happened during the May 8, 2014 hearing before Judge Chapman...
I went down to the courthouse that day to observe. There was much excitement in the courthouse on May 8 because the hearing followed weeks of trial. The hearing lasted for over 4 hours while Judge Chapman read a series of rulings into the record concerning the treatment of Charlie Ergen's purchased claims. Ultimately the Judge decided not to confirm a chapter 11 plan and to send the parties to mediation - even though she was none too pleased by Charlie Ergen's allegedly sharp dealings.
Below is an article I worked up concerning the implications of the LightSquared rulings on claims trading.
It is only because claims can be bought and sold that Charlie Ergen's company was able to get into the capital structure of LightSquared as it did.... And we are seeing more investors buying into bankruptcy cases lately, including the Carlyle Group, which is associated with investments in success, not investments in bankruptcy-related distress.
The article is still in draft form, a work in progress based on what was explained during the May 8, 2014 hearing and not on the very voluminous filings that preceded. Comments and questions are welcome, by claims traders and others who may be interested in reviewing a transcript of the court's ruling.