LightSquared Sues Ergen, Dish Over Debt Purchases
LightSquared on Friday sued Dish Network Corp. and Chairman Charlie Ergen, saying Mr. Ergen illegally purchased LightSquared debt before Dish bid on the company’s assets.
The suit, filed Friday with the U.S. Bankruptcy Court in Manhattan, says that, among other things, Mr. Ergen ordered Dish Treasurer Jason Kiser to purchase — through a newly created investment entity called SP Special Opportunities LLC — more than $1 billion in LightSquared debt in the months before Dish bid on the telecommunications company’s assets.
LightSquared said Mr. Kiser made the trades through Sound Point Capital Management, a hedge-fund firm run by Stephen Ketchum. Mr. Ergen previously said he created the investment vehicle but that it wasn’t affiliated with Dish. LightSquared says it is.