LightSquared Teeters On Bankruptcy, Should Hear Official Word Tomorrow

The end looks nigh for LightSquared. The company that intended to hook up with Sprint for 15 years (or more) in order to redefine the 4G landscape in the United States is on the brink of disaster, and according to a Wall Street Journal report, the cards could fold as early as tomorrow. Reportedly, Philip Falcone's project could be getting ready for a bankruptcy-protection filing, which could go into effect as early as tomorrow. Why? Because time has simply ran out, for the last time. Despite taking advantage of a number of debt waivers, the company owes around $1.6 billion to various parties. And the two sides are seemingly too far apart to to make it work any longer.

It sounds like the two sides will have until 5PM tomorrow in order to reach a deal that would keep LightSquared out of bankruptcy court, but it's unlikely another waiver will be granted. What does this mean for LightSquared? Not much that we didn't already know. Sprint dashed the company's hope of a partnership after too many GPS interference issues (and FCC probes) battered its image, and it's unlikely that any other wireless carrier would take the risk at this point. You win some, and you lose some, and it sounds like this game is just about finished.