It’s showtime for hedge fund honcho Phil Falcone. Acording to a report in the New York Post the wealthy backer of LightSquared, the 4G
wireless start-up, is staring at a 10 a.m. Monday morning deadline to step down
from the company and greatly reduce his ownership stake or risk losing his
entire $2.9 billion investment by having creditors force it into bankruptcy.
Creditors, including Carl Icahn, feel Falcone has become too
toxic a presence atop LightSquared and that the company can succeed only if the
49-year-old chairman of Harbinger Capital Management makes himself scarce.
Falcone, earlier this year, rankled a Capitol Hill lawmaker
with his actions and has been unable to smooth over a hostile relationship with
several groups, including the Defense Dept., which are upset that
LightSquared’s 4G network interferes with their GPS systems. Creditors have deemed Falcone a “political
lightning rod.”
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