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Debtors Application to Retain Gibson Dunn

Debtors Application to Retain Gibson Dunn

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Hearing Date: June 11, 2012 at 2:00 p.m. (E.T.) Objection Deadline: June 5, 2012 at 5:00 p.m. (E.T.)

Matthew S. Barr Steven Z. Szanzer Karen Gartenberg MILBANK, TWEED, HADLEY & MCCLOY LLP One Chase Manhattan Plaza New York, NY 10005-1413 (212) 530-5000 Proposed Counsel to Debtors and Debtors in Possession UNITED STATES BANKRUPTCY COURT SOUTHERN DISTRICT OF NEW YORK In re: LIGHTSQUARED INC., et al., Debtors.1 ) ) ) ) ) ) ) Chapter 11 Case No. 12-12080 (SCC) Jointly Administered

NOTICE OF HEARING ON DEBTORS’ APPLICATION PURSUANT TO SECTION 327(e) OF THE BANKRUPTCY CODE FOR ENTRY OF AN ORDER AUTHORIZING THE DEBTORS TO RETAIN AND EMPLOY GIBSON, DUNN & CRUTCHER LLP AS SPECIAL LITIGATION COUNSEL NUNC PRO TUNC TO THE PETITION DATE

PLEASE TAKE NOTICE that LightSquared Inc., and certain of its subsidiaries and affiliates, as debtors and debtors-in-possession (collectively, the “Debtors” and each, a “Debtor”), submit this Application (the “Application”) for entry of an order pursuant to section 327(e) of title 11 of the United States Code (the “Bankruptcy Code”), Rules 2014(a) and

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The debtors in these chapter 11 cases, along with the last four digits of each debtor’s federal or foreign tax or registration identification number, are: LightSquared Inc. (8845), LightSquared Investors Holdings Inc. (0984), One Dot Four Corp. (8806), One Dot Six Corp. (8763), SkyTerra Rollup LLC (N/A), SkyTerra Rollup Sub LLC (N/A), SkyTerra Investors LLC (N/A), TMI Communications Delaware, Limited Partnership (4456), LightSquared GP Inc. (6190), LightSquared LP (3801), ATC Technologies, LLC (3432), LightSquared Corp. (1361), LightSquared Finance Co. (6962), LightSquared Network LLC (1750), LightSquared Inc. of Virginia (9725), LightSquared Subsidiary LLC (9821), Lightsquared Bermuda Ltd. (7247), SkyTerra Holdings (Canada) Inc. (0631), SkyTerra (Canada) Inc. (0629) and One Dot Six TVCC Corp. (0040). The location of the debtors’ corporate headquarters is 450 Park Avenue, Suite 2201, New York, NY 10022.

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2016 of the Federal Rules of Bankruptcy Procedure (the “Bankruptcy Rules”), and Rule 2014-1 of the Local Rules of Bankruptcy Practice and Procedure for the United States Bankruptcy Court for the Southern District of New York (the “Local Rules”) authorizing the Debtors to retain and employ Gibson, Dunn & Crutcher LLP (“Gibson Dunn”), as special litigation counsel for the Debtors nunc pro tunc to the commencement of these Chapter 11 Cases. PLEASE TAKE FURTHER NOTICE that a hearing (the “Hearing”) on the Application will be held before the Honorable Shelley C. Chapman, Judge of the United States Bankruptcy Court for the Southern District of New York (the “Bankruptcy Court”) on June 11, 2012 at 2:00 p.m. (prevailing Eastern time). PLEASE TAKE FURTHER NOTICE that any responses or objections, if any, to the Application and the relief requested therein must be made in writing, conform to the Bankruptcy Rules and the Local Rules, set forth the basis for the objection and the specific grounds therefor, and be filed with the Bankruptcy Court (a) by registered users of the Bankruptcy Court’s case filing system, electronically in accordance with General Order M-399 (which can be found at http://nysb.uscourts.gov) and (b) by all other parties in interest, on a 3.5 inch disk, in text-searchable portable document format (PDF) (with a hard copy delivered directly to Chambers), in accordance with the customary practices of the Bankruptcy Court and General Order M-399 and shall be served in accordance with General Order M-399 upon each of the following: (a) LightSquared, Inc., 450 Park Avenue, Suite 2201, New York, NY 10022, Attn: Marc R. Montagner and Curtis Lu, Esq., (b) proposed counsel to the Debtors, Milbank, Tweed, Hadley & McCloy LLP, One Chase Manhattan Plaza, New York, NY 10005-1413, Attn: Matthew S. Barr, Esq. and Karen Gartenberg, Esq., (c) the Office of the United States Trustee for the Southern District of New York, 33 Whitehall Street, 21st Floor, New York, NY 10004, Attn:

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Susan D. Golden, Esq., (d) counsel to U.S. Bank National Association, as administrative agent under the Prepetition Inc. Credit Agreement, Akin Gump Strauss Hauer & Feld LLP, One Bryant Park, New York, NY 10036, Attn: Michael S. Stamer, Esq. and Philip C. Dublin, Esq., (e) counsel to UBS AG, Stamford Branch, as administrative agent under the Prepetition LP Credit Agreement, Latham & Watkins LLP, 885 Third Avenue, New York, NY 10022, Attn: Melissa S. Alwang, Esq., (f) counsel to the ad hoc secured group of Prepetition LP Lenders, White & Case LLP, 1155 Avenue of the Americas, New York, NY 10036, Attn: Thomas E Lauria, Esq., and (g) Gibson, Dunn & Crutcher LLP, 1801 California Street, Suite 4200, Denver, CO 802022642, Attn: Jeremy L. Graves, Esq., so as to be actually received no later than June 5, 2012 at 5:00 p.m. (prevailing Eastern time). Only those responses or objections that are timely filed, served, and received will be considered at the Hearing. PLEASE TAKE FURTHER NOTICE that if you do not timely file and serve a written objection to the relief requested in the Application, the Bankruptcy Court may deem any opposition waived, treat the Application as conceded, and enter an order granting the relief requested in the Application without further notice or hearing. PLEASE TAKE FURTHER NOTICE that a copy of the Application may be obtained at no charge at http://www.kccllc.net/LightSquared or for a fee via PACER at http://www.nysb.uscourts.gov.

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New York, New York Dated: May 29, 2012

Respectfully submitted,

/s/ Matthew S. Barr Matthew S. Barr Steven Z. Szanzer Karen Gartenberg MILBANK, TWEED, HADLEY & MCCLOY LLP One Chase Manhattan Plaza New York, NY 10005-1413 (212) 530-5000 Proposed Counsel to Debtors and Debtors in Possession

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Matthew S. Barr Steven Z. Szanzer Karen Gartenberg MILBANK, TWEED, HADLEY & MCCLOY LLP One Chase Manhattan Plaza New York, NY 10005-1413 (212) 530-5000 Proposed Counsel to Debtors and Debtors in Possession UNITED STATES BANKRUPTCY COURT SOUTHERN DISTRICT OF NEW YORK In re: LIGHTSQUARED INC., et al., Debtors.1 ) ) ) ) ) ) ) Chapter 11 Case No. 12-12080 (SCC) Jointly Administered

DEBTORS’ APPLICATION PURSUANT TO SECTION 327(e) OF THE BANKRUPTCY CODE FOR ENTRY OF AN ORDER AUTHORIZING THE DEBTORS TO RETAIN AND EMPLOY GIBSON, DUNN & CRUTCHER LLP AS SPECIAL LITIGATION COUNSEL NUNC PRO TUNC TO THE PETITION DATE LightSquared Inc. and certain of its affiliates, as debtors and debtors in possession (collectively, “LightSquared” or the “Debtors”) in the above-captioned chapter 11 cases (the “Chapter 11 Cases”), file this application (the “Application”) for entry of an order (the “Order”) authorizing the employment and retention of Gibson, Dunn & Crutcher LLP (“Gibson Dunn”),

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The debtors in these chapter 11 cases, along with the last four digits of each debtor’s federal or foreign tax or registration identification number, are: LightSquared Inc. (8845), LightSquared Investors Holdings Inc. (0984), One Dot Four Corp. (8806), One Dot Six Corp. (8763), SkyTerra Rollup LLC (N/A), SkyTerra Rollup Sub LLC (N/A), SkyTerra Investors LLC (N/A), TMI Communications Delaware, Limited Partnership (4456), LightSquared GP Inc. (6190), LightSquared LP (3801), ATC Technologies,LLC (3432), LightSquared Corp. (1361), LightSquared Finance Co. (6962), LightSquared Network LLC (1750), LightSquared Inc. of Virginia (9725), LightSquared Subsidiary LLC (9821), Lightsquared Bermuda Ltd. (7247), SkyTerra Holdings (Canada) Inc. (0631), SkyTerra (Canada) Inc. (0629) and One Dot Six TVCC Corp. (0040). The location of the debtors’ corporate headquarters is 450 Park Avenue, Suite 2201, New York, NY 10022.

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as special litigation counsel for the Debtors nunc pro tunc to the commencement of these Chapter 11 Cases. In support of this Application, the Debtors submit the Declaration of Eugene Scalia, a partner of Gibson Dunn (the “Scalia Declaration”), which is attached hereto as Exhibit A. In further support of this Application, the Debtors respectfully state as follows: Jurisdiction 1. This Court has jurisdiction to hear the Application under 28 U.S.C.

§ 1334. This matter is a core proceeding within the meaning of 28 U.S.C. § 157(b)(2). 2. 3. Venue in this Court is proper pursuant to 28 U.S.C. §§ 1408 and 1409. The statutory bases for the relief requested herein are sections 327(e),

328(a) and 330 of title 11 of the United States Code, 11 U.S.C. §§ 101-1532 (as amended, the “Bankruptcy Code”), Rules 2014(a) and 2016 of the Federal Rules of Bankruptcy Procedure (the “Bankruptcy Rules”), and Rule 2014-1 of the Local Bankruptcy Rules for the Southern District of New York (the “Local Rules”). Background A. Introduction 4. On May 14, 2012 (the “Petition Date”), each of the Debtors filed

voluntary petitions for relief under chapter 11 of the Bankruptcy Code. 5. The Debtors continue to operate their businesses and manage their

properties as debtors in possession pursuant to sections 1107(a) and 1108 of the Bankruptcy Code. The Chapter 11 Cases are being jointly administered for procedural purposes. No trustee, examiner, or statutory committee of unsecured creditors has been appointed in these Chapter 11 Cases.

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B.

Overview of Debtors’ Businesses (i) Debtors’ Satellite Business 6. LightSquared, a mobile communications company with headquarters in

New York and incorporated in Delaware in 1985, is the first private company to offer mobile satellite services throughout North America, initially using two geostationary satellites2 as well as a portion of the electromagnetic spectrum known as the L-Band. Since its first satellite became operational in 1996, LightSquared has provided satellite communications services— which include data, voice, fax, and dispatch services—to companies and federal, state, provincial, local, and foreign governments that are wholesale purchasers of bandwidth power and capacity, resellers of telephony, data, and dispatch services, and retail voice users. For example, LightSquared provides services to public safety officers, emergency responders, and the United States military. Today, LightSquared’s mobile satellite business generates approximately $30 million in annual revenue and provides service to approximately 300,000 end users. 7. LightSquared launched SkyTerra-1 in November 2010, which, as

mentioned above, is one of two next-generation satellites that have been constructed by LightSquared. LightSquared’s next-generation satellites are two of the most powerful mobile satellites ever constructed. Each is equipped with a 22 meter (75 foot) diameter antenna, which provides ten (10) times better performance than that provided by LightSquared’s prior satellites.

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These two first-generation satellites, known as MSAT-1 and MSAT-2, currently provide services to some existing customers, and have also, since March 10, 2012, provided emergency back-up service to all of LightSquared’s customers due to a solar flare(s), which temporarily disabled the SkyTerra-1 satellite, one of LightSquared’s two next-generation satellites. LightSquared is currently finalizing the assessment of the solar flare(s) prior to transitioning customers back to that satellite for service. LightSquared will also rely upon the MSAT system until such time that SkyTerra-2, LightSquared’s second next-generation satellite, is launched. Both MSAT-1 and MSAT-2 are approaching the ends of their useful lives and are part of the Prepetition LP Collateral (as defined below). They have, in the past, experienced anomalies and Solid State Power Amplifier failures and neither currently operates at full capacity.

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The satellites have the capability of forming up to five hundred (500) beams over North America and can operate with devices that are as small as standard cell phones or USB modems. The SkyTerra-1 and SkyTerra-2 satellite networks utilize state-of-the art ground-based beam forming systems. Such systems allow flexibility in beam shapes, number, bandwidth allocation, and beam power allocation, which is unprecedented in prior mobile satellite systems. SkyTerra-1 is fully operational, and SkyTerra-2 is constructed and stored in preparation for launch. 8. LightSquared currently operates three (3) lines of business, including

Mobile Satellite Communications (“MSAT”), Mobile Data Services (“MDS”), and Private Network Carriers (“PNC”) through a wholesale business model whereby its partners bill the end users, and LightSquared bills its partners at a wholesale rate. Through these three lines of business, LightSquared has over fifteen wholesale partners, including, but not limited to, Comtech Mobile Datacom Corporation, XATA Corporation, SkyBitz, Outerlink, Omnistar, Wireless Matrix, EMS Technologies/Honeywell, Network Innovations, Glentel, Astrum, Infosat, Inmosat, and International Satellite Service, that collectively support approximately 300,000 subscribers across several markets throughout North America. 9. MSAT Business. LightSquared’s MSAT business provides circuit-

switched voice, low data rate services, and push-to-talk (“PTT”) services, which are sold through LightSquared’s authorized wholesale service providers and are utilized by a variety of governmental agencies at the federal, state, and local level, as well as by various markets in the enterprise space. LightSquared is currently the only commercial satellite operator in North America offering PTT service. LightSquared’s two-way, PTT radio service over satellite is a popular option for communications in remote areas or during emergency situations, and its dispatch or two-way radio style is familiar to the public safety community and ideal for command

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and control. Thus, in the public/government sector, LightSquared’s MSAT business serves end users in public safety, emergency management, and defense as well as health and education. 10. Specifically, LightSquared’s PTT products and services were utilized by

public safety and education (such as the University of North Carolina Wilmington) end users during, and in preparation for, several disasters, including Hurricane Katrina (Mississippi Department of Wildlife, Fisheries and Parks), Hurricane Gustav (several federal, state and local agencies), Hurricane Irene (DE State Police, MD Emergency Management Agency), Kentucky Ice Storms (Kentucky Department for Public Health), and, most recently, the tornadoes in Kentucky (Kentucky Department for Public Health). In all of these disasters, LightSquared’s mobile satellite service, with its PTT capability, provided instant communications for public safety agencies and a means for interoperability among disparate agencies. 11. Moreover, in recent years, the United States has faced a variety of costly

natural and man-made disasters, including hurricanes, tornadoes, wildfires, flooding, and earthquakes, as well as the 9/11 terrorist attacks, which have amplified the need for dependable communications that enable organizations to communicate with each other. Often, the only means available to the public safety/emergency responder community to do so is through mobile satellite communications. To address these needs, federal, state, and local agencies have voluntarily banded together with LightSquared in a public-private partnership to create the Satellite Mutual Aid Radio Talkgroup (“SMART”) program—enabling nationwide and regional interoperability at no additional cost to LightSquared users. Since SMART is a feature provided at no cost to LightSquared’s public safety end users, the SMART program, incorporating such SMART feature, is a cost-efficient program that delivers measurable return on investment—swift and reliable communications interoperability for emergency response and contingency operations. With the

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rapid growth of SMART, public safety and emergency responders have a resource that enables communications interoperability that is immediate, reliable and always available. 12. It is thus no surprise that the nationwide and regional SMART end users

include, among others, (a) JSMART, utilized by public safety agencies across the country and managed by the DOJ Wireless Management, (b) LSMART, utilized nationally by law enforcement and managed by the U.S. Marshals Service, (c) USMART, utilized by urban search and rescue teams across the United States and managed by the Montgomery County, Maryland Fire & Rescue Service, (d) NE SMART, utilized by the northeast states and managed by the Connecticut State Police, (e) WSMART, utilized by the western states and managed by the California Emergency Management Agency, and (f) MWSMART, utilized by the midwest states and managed by the Indiana Department of Homeland Security. 13. The MSAT line of business also serves various markets in the enterprise

space, including maritime, oil and gas, utilities, transportation, media, and recreation. In the maritime vertical market, especially in Alaska, fishermen rely on LightSquared’s PTT capability while at sea in extreme environments, especially north of 60° toward the Aleutians. Additionally, enterprise users in the oil and gas industry rely on LightSquared’s mobile satellite service in the Gulf region to communicate with workboats and on oil rigs/platforms for instantaneous communication between rigs/boats and back to operations centers on the coast. 14. MDS Business. LightSquared’s second line of business, MDS, is a low data

rate service offering used primarily for applications such as fleet and load management, email, vehicle tracking, two-way messaging, and broadcast messaging. Like LightSquared’s MSAT services, MDS is sold through LightSquared’s authorized wholesale service providers and is utilized by various end users. One such end user, the New Mexico State Police, utilizes MDS in

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police cruisers to enable officers to perform database lookups on ruggedized laptops in remote areas where no terrestrial communications exist and LightSquared’s satellite service is the only means by which to meet this critical data communications requirement in an effective manner. 15. PNC Business. Finally, LightSquared’s third line of business, PNC, enables

customers to lease bandwidth from LightSquared over which they offer custom satellite data solutions (typically, asset tracking services for truck and rail) to a wide variety of end users. In connection therewith, LightSquared’s PNC customers are responsible for developing a custom air interface, providing hub, end-user equipment, and servicing end users. One of LightSquared’s largest PNC customers, SkyBitz, provides asset tracking services through LightSquared’s satellite capacity for Tri State Motor Transit Co., an end user that hauls high-risk cargo such as munitions, explosives and nuclear fuel bound for sites from coast to coast. LightSquared’s satellite capacity ensures that trailers hauling this cargo are constantly tracked where terrestrial communications do not exist. Another PNC customer, Comtech Mobile Datacom Corp., provides service to the United States military, utilizing LightSquared’s service in North America in connection with the Blue Force Tracking system that tracks all military assets. (ii) Debtors’ Terrestrial Component of Satellite Business 16. In the late 1990s, LightSquared determined that adding a terrestrial (i.e.,

land-based) component to its satellite system would optimize the use of the L-Band and provide a communications system with superior reliability and coverage. By combining a nationwide system of terrestrial base stations with one of the largest commercial satellites ever launched— the state-of-the-art SkyTerra—LightSquared could offer coverage of a satellite system in North America and the capacity of a next-generation, high-speed wireless broadband network.

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17.

LightSquared determined that a significant market opportunity was created

for a wholesale-only, 4th Generation Long Term Evolution (“4G LTE”) wireless broadband network due to, among other things, (a) the proliferation of new mobile devices, such as smartphones and tablets, which accelerated demand for ubiquitous, on-the-go data-rich Internet services, (b) limited wireless network capacity available to support increased data usage, and (c) substantial costs and barriers to entry preventing smaller carriers and new operators from deploying nationwide 4G LTE networks. LightSquared believed that many wireless operators would face significant challenges meeting network demands due to spectrum availability and capital shortages because the wireless communications industry was (and currently remains) dominated by a small number of established, national wireless carriers and current levels of data transmission already utilized significant network capacity. This led LightSquared to conclude that some carriers would be unable to deploy their own 4G LTE networks in a timely and costeffective manner, while others would be unable to install enough capacity to serve the needs of their existing customer bases, thereby resulting in such carriers being unable to offer comparable service quality and speeds on a cost-competitive basis with the largest national carriers. To address this imbalance, LightSquared’s strategy was, and currently remains, to enable a broad range of potential wholesale customers to launch competitive retail wireless service offerings using wholesale capacity on LightSquared’s 4G LTE network. 18. Accordingly, LightSquared initiated the process of building the only 4G

LTE open wireless broadband network that incorporates both terrestrial (i.e., land-based) and satellite coverage throughout North America and offers people the speed, value and reliability of universal connectivity, wherever they may be located. The satellite component of the system would provide service to the population in areas not otherwise covered by terrestrial systems.

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Through its wholesale-only business model, entities without their own wireless network, or that have limited geographic coverage or spectrum, will be able to market and sell their own devices, applications, and services using the LightSquared network at a competitive price and without retail competition from LightSquared. This, in turn, will enable manufacturers and retailers to provide a solution for consumers, while creating new customer relationships and ongoing revenue streams for themselves. LightSquared’s partners will also be able to develop their own devices, applications, and services on the LightSquared network because it is a completely open network system. 19. As of the Petition Date, the Debtors employed approximately 168 people

in the United States and Canada. As of February 29, 2012, the Debtors had approximately $4.48 billion in assets (book value) and $2.29 billion in liabilities. C. Additional Information 20. Additional information regarding the Debtors’ businesses, assets, capital

structure and the circumstances leading to the filing of these Chapter 11 Cases is set forth in the Declaration of Marc R. Montagner, Chief Financial Officer and Interim Co-Chief Operating Officer of LightSquared Inc., (A) in Support of First Day Pleadings and (B) Pursuant to Rule 1007-2 of Local Bankruptcy Rules for United States Bankruptcy Court for Southern District of New York (the “Montagner Declaration”), filed in the Chapter 11 Cases on May 14, 2012 [Docket No. 3]. Retention of Gibson Dunn A. Qualifications of Gibson Dunn 21. Gibson Dunn is a leading international law firm with a client roster that

includes many of the world’s leading public companies, financial institutions, and Fortune 500 corporations. Gibson Dunn’s litigation department is widely recognized as one of the best in the 9

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United States and has been recognized as “Litigation Department of the Year” two times in a row by The American Lawyer. Gibson Dunn’s Administrative Law and Regulatory Practice Group includes a number of lawyers with high-level government experience, including former general counsels to the EPA, Department of Labor (Solicitor of Labor), and Department of Justice (Assistant Attorney General, Office of Legal Counsel); and lawyers who have held top legal, policy, and enforcement positions at the FTC, SEC, and other agencies. Lawyers in the Administrative Law group work closely with the firm’s Appellate and Constitutional Law Practice Group, whose experience in the U.S. Supreme Court and the federal and state appellate courts is widely recognized to be among the very best in the country. And when, as here, an agency’s actions warrant Congressional scrutiny, the Firm’s Legislative Counsel and Government Relations Practice Group provides sophisticated expert assistance. 22. Prior to the Petition Date, Gibson Dunn represented LightSquared as its

litigation counsel in connection with ongoing proceedings before the Federal Communications Commission (the “FCC”). Gibson Dunn is familiar with LightSquared’s operations, including its history, the nature of LightSquared’s FCC licenses and authorizations, the scope of its satellite and ATC authority, its investment in a national broadband network, its various FCC filings, and its spectrum-related policy objectives. Gibson Dunn is also well-versed in the FCC’s proposed revocation of LightSquared’s conditional waiver order and rescission of LightSquared’s ATC authorization, and the proceedings conducted to date in connection with those proposed actions, and with LightSquared’s request for a declaratory ruling regarding protection for GPS operators operating in LightSquared’s band. Attorneys at Gibson Dunn have worked closely with LightSquared’s executives and attorneys in preparing FCC filings and have been integrally involved in researching legal arguments and supplementing the agency record in an effort to

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avoid an adverse determination by the FCC. Gibson Dunn has also played a central role in developing and preserving LightSquared’s arguments for purposes of appealing any adverse determination. Therefore, the Debtors have determined that continuing to engage Gibson Dunn to perform the services described in the Engagement Letter attached hereto as Exhibit B (the “Engagement Letter”) will significantly aid the Debtors and their management in their efforts, among other things, to maximize the value of their estates. 23. The services that Gibson Dunn has agreed to provide to the Debtors and

their management, which are described in paragraph 25 below, are well within the experience and expertise of Gibson Dunn. 24. Accordingly, the Debtors submit that the retention of Gibson Dunn on the

terms and conditions set forth herein is necessary and appropriate, is in the best interests of their estates, creditors, and all other parties in interest, and should be approved in all respects. B. Scope of Services 25. The Debtors anticipate that during the Chapter 11 Cases, Gibson Dunn

will render legal services as the Debtors, their management and Gibson Dunn deem appropriate and feasible, including, without limitation, the following:      Conduct legal research related to the FCC proceedings and LightSquared’s potential responses to FCC action; Prepare memoranda on legal claims related to the FCC proceedings and issues for appeal in the event of an adverse determination by the FCC; Review documents produced in response to requests under the Freedom of Information Act; Prepare FCC filings and other legal documents on behalf of LightSquared; Develop and implement strategies to achieve policy objectives in Congress and before particular federal agencies;

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   26.

Develop and supplement the record before the FCC for purposes of an appeal of any adverse FCC determinations; Represent LightSquared in any FCC hearing, petition for stay, or appellate proceeding; and Perform all other legal services for the Debtors that may be necessary. Gibson Dunn will not be performing general bankruptcy services for the

Debtors and will coordinate closely with the Debtors’ proposed general bankruptcy counsel, Milbank, Tweed, Hadley & McCloy LLP, to avoid the duplication of services. C. Gibson Dunn’s Disinterestedness 27. Gibson Dunn has reviewed its electronic database and, to the best of its

knowledge and except to the extent disclosed in the Scalia Declaration and exhibits thereto, Gibson Dunn does not, by reason of any direct or indirect relationship to, connection with or interest in the Debtors or other parties in interest, represent or hold any interest adverse to the Debtors, their estates, or any class of creditors or equity holders with respect to the matters upon which it is to be engaged. 28. If any new material facts or relationships are discovered or arise, Gibson

Dunn will provide the Court with a supplemental declaration. 29. Gibson Dunn does not believe it is a “creditor” of the Debtors within the

meaning of Bankruptcy Code section 101(10). Gibson Dunn has agreed not to share with any person or firm the compensation to be paid for professional services rendered in connection with the Chapter 11 cases, other than as permitted pursuant to section 504 of the Bankruptcy Code.

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D.

Terms of Retention 30. Subject to approval by the Court, the Debtors propose to pay Gibson Dunn

at the following hourly billing rates:3 Name Theodore B. Olson Eugene Scalia Michael Bopp John Bash Ashley Boizelle Derek Lyons Sam Dewey David Fotouhi 31. Position Partner Partner Partner Associate Associate Associate Associate Associate Rate US $1,800 US $980 US $765 US $640 US $555 US $555 US $515 US $445

The above-listed rates are the normal hourly rates charged by Gibson

Dunn professionals. This includes the hourly rate charged by Theodore B. Olson. Selected by Time magazine in 2010 as one of the 100 most influential people in the world, Mr. Olson is one of the nation’s premier appellate and United States Supreme Court advocates. He has argued 58 cases in the Supreme Court, including the two Bush v. Gore cases arising out of the 2000 presidential election, and Citizens United v. Federal Election Commission, prevailing in over 75% of those arguments. As Solicitor General of the United States during the presidency of George W. Bush, Mr. Olson was the Government’s principal advocate in the United States Supreme Court, responsible for supervising and coordinating all appellate litigation of the United States, and a legal adviser to the President and the Attorney General. As Assistant Attorney General for the Office of Legal Counsel during the Reagan Administration, Mr. Olson was the Executive Branch’s principal legal adviser, rendering legal guidance to the President and to the heads of the Executive Branch departments on a wide range of constitutional and federal

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Other Gibson Dunn professionals may provide services to the Debtors at their ordinary hourly billing rates.

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statutory questions, and assisting in formulating and articulating the Executive Branch’s position on constitutional issues. Mr. Olson has served as private counsel to two Presidents, Ronald W. Reagan and George W. Bush, in addition to serving those two Presidents in high-level positions in the Department of Justice. He has twice been awarded the United States Department of Justice’s Edmund J. Randolph Award, its highest award for public service and leadership, and also received the Department of Defense’s highest civilian award for his advocacy in the courts of the United States, including the Supreme Court. Most recently, Mr. Olson was named as one of five finalists for “Litigator of the Year” by The American Lawyer. As a consequence of his extensive and unique experience, Mr. Olson is in high demand among clients and potential clients and therefore commands, as his normal hourly rate, an hourly rate at a premium to other lawyers. 32. In addition to compensation for professional services rendered by Gibson

Dunn professionals, Gibson Dunn will seek reimbursement for reasonable and necessary expenses incurred in connection with the Chapter 11 Cases, including, but not limited to, travel, lodging, computer research, messenger services, and telephone charges. 33. Gibson Dunn intends to maintain detailed, contemporaneous time records

(in 1/10th of an hour increments) and apply to the Court for payment of compensation and reimbursement of expenses in accordance with applicable provisions of the Bankruptcy Code, the Bankruptcy Rules, the Local Rules, and any additional procedures that may be established by the Court in the Chapter 11 Cases. Gibson Dunn has agreed to accept as compensation such sums as may be allowed by the Court and understands that interim and final fee awards are subject to approval by this Court.

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34.

Prior to the Petition Date, Gibson Dunn received retainer funds (the

“Retainer”) from the Debtors for services to be rendered and for reimbursement of expenses to be incurred by the Debtors. As of the Petition Date, the remaining amount of the Retainer was approximately $560,000. 35. Due to the ordinary course and unavoidable reconciliation of fees and

submissions of expenses immediately prior to, and subsequent to, the Petition Date, Gibson Dunn may have incurred but not billed fees and reimbursable expenses, which relate to the prepetition period. Gibson Dunn hereby seeks the Court’s approval to apply the Retainer to these amounts and any further prepetition fees and expenses Gibson Dunn becomes aware of during its ordinary course billing review and reconciliation. 36. Gibson Dunn also intends to apply the Retainer to the amounts approved

by the Court as compensation and reimbursement of expenses during the pendency of the Chapter 11 Cases, until the exhaustion of the Retainer. Relief Requested 37. By this Application, the Debtors respectfully request entry of the Order

authorizing the employment and retention of Gibson Dunn as attorneys for the Debtors, effective as of the Petition Date, pursuant to sections 327(e) and 330 of the Bankruptcy Code, Bankruptcy Rules 2014(a) and 2016, and Local Rule 2014-1. Pursuant to section 328(a) of the Bankruptcy Code, the Debtors further request that the Court approve the retention of Gibson Dunn in accordance with Gibson Dunn’s normal hourly rates in effect at the time services are rendered and normal reimbursement policies.

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Basis For Relief 38. Section 327(e) of the Bankruptcy Code provides that a debtor in

possession may, with the court’s approval, employ “an attorney that has represented the debtor” for a “specified special purpose, other than to represent the trustee in conducting the case,” if such attorney “does not represent or hold any interest adverse to the debtor or to the estate with respect to the matter on which such attorney is to be employed.” 11 U.S.C. § 327(e). 39. The Debtors propose to retain Gibson Dunn’s services for the special

purpose of representing the Debtors in connection with the FCC dispute. The Debtors respectfully submit that Gibson Dunn’ expertise and advice regarding this dispute is vital to ensuring that the Debtors have the necessary licenses and authorizations to operate their business, and thereby maximize the value of the Debtors’ estates and to ensure the success of their reorganization efforts. Further, Gibson Dunn is well-qualified and able to represent the Debtors in a cost-effective, efficient and timely manner. As stated above, the Debtors do not believe that Gibson Dunn holds or represents any interest adverse to the Debtors’ estates on the matters for which Gibson Dunn is proposed to be retained. Accordingly, the Debtors submit that the retention of Gibson Dunn is in the best interests of the Debtors, their estates and their creditors and should be approved by the Bankruptcy Court. 40. The Retainer is appropriate for several reasons. See In re Insilco Techs.,

Inc., 291 B.R. 628, 634 (Bankr. D. Del. 2003) (“Factors to be considered, include . . . whether terms of an engagement agreement reflect normal business terms in the marketplace; . . . the relationship between the Debtor and the professionals, i.e., whether the parties involved are sophisticated business entities with equal bargaining power who engaged in an arms-length negotiation[] [and] . . . whether the retention, as proposed, is in the best interests of the estate[] . .

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.”). First, these types of retainer agreements reflect normal business terms in the marketplace. See id. at 634 (“[I]t is not disputed that the taking of [security] retainers is a practice now common in the market place.”). Second, both Gibson Dunn and the Debtors are sophisticated business entities that have negotiated the Retainer at arm’s length. Third, the retention of Gibson Dunn in these Chapter 11 Cases is in the best interests of the Debtors’ estates, and the Retainer allows the Debtors to maintain the prepetition relationship established with Gibson Dunn. Fourth, Gibson Dunn has agreed to the application of the Retainer to all amounts approved to be paid to Gibson Dunn by the Court as compensation and reimbursement of expenses, and will seek payment directly from the Debtors only upon the exhaustion of the Retainer, allowing the Debtors to preserve their cash for operational purposes. Thus, the facts and circumstances of these cases support the approval of the Retainer. Motion Practice 41. This Application includes citations to the applicable rules and statutory authorities

upon which the relief requested herein is predicated, and a discussion of their application to this Application. Accordingly, the Debtors submit that this Application satisfies Local Rule 90131(a). Notice 42. The Debtors have caused notice of this Application to be provided by

electronic mail, facsimile, regular or overnight mail and/or hand delivery to (a) the U.S. Trustee, (b) the entities listed on the Consolidated List of Creditors Holding the 20 Largest Unsecured Claims filed pursuant to Bankruptcy Rule 1007(d), (c) counsel to the agents for the Debtors’ prepetition secured lenders, (d) counsel to the ad hoc secured group of Prepetition LP Lenders (as defined in the Montagner Declaration), (e) counsel to Harbinger Capital Partners, (f) the

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Internal Revenue Service, (g) the United States Attorney for the Southern District of New York, (h) the Federal Communications Commission, and (i) Industry Canada. The Debtors respectfully submit that no other or further notice is required or necessary. No Prior Request 43. No prior motion for the relief sought in this Application has been made to

this or any other court.

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WHEREFORE, for the reasons set forth herein and in the Scalia Declaration, the Debtors respectfully request that the Court (a) enter the Order, substantially in the form attached hereto as Exhibit C, granting the relief requested herein and (b) grant such other and further relief as the Court may deem just and proper.

New York, New York Dated: May 29, 2012

/s/ Marc R. Montagner Marc R. Montagner Chief Financial Officer and Interim Co-Chief Operating Officer LIGHTSQUARED INC. (for itself and each of the other Debtors and Debtors in Possession) 450 Park Avenue New York, NY 10022 (703) 390-2700

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Exhibit A Declaration of Eugene Scalia

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UNITED STATES BANKRUPTCY COURT SOUTHERN DISTRICT OF NEW YORK In re: LIGHTSQUARED INC., et al., Debtors.1 ) ) ) ) ) ) ) Chapter 11 Case No. 12-12080 (SCC) Jointly Administered

DECLARATION OF EUGENE SCALIA IN SUPPORT OF DEBTORS’ APPLICATION PURSUANT TO SECTIONS 327(e) AND 328 OF THE BANKRUPTCY CODE FOR ENTRY OF AN ORDER AUTHORIZING THE DEBTORS TO RETAIN AND EMPLOY GIBSON DUNN AS SPECIAL LITIGATION COUNSEL NUNC PRO TUNC TO THE PETITION DATE TOGETHER WITH DISCLOSURE OF COMPENSATION PURSUANT BANKRUPTCY RULE 2016(b) I, Eugene Scalia, hereby declare and state as follows: 1. I am a partner of Gibson, Dunn & Crutcher LLP (“Gibson Dunn”), and I

am authorized to make and submit this declaration on behalf of Gibson Dunn. This declaration is submitted in support of the application (the “Application”) of LightSquared Inc. and certain of its affiliates, as debtors and debtors in possession (collectively, the “Debtors” and each, a “Debtor”), for authorization to retain and employ Gibson Dunn to serve as the Debtors’ special litigation counsel. Unless otherwise noted, I have personal knowledge of the facts set forth
2

1

The debtors in these chapter 11 cases, along with the last four digits of each debtor’s federal or foreign tax or registration identification number, are: LightSquared Inc. (8845), LightSquared Investors Holdings Inc. (0984), One Dot Four Corp. (8806), One Dot Six Corp. (8763), SkyTerra Rollup LLC (N/A), SkyTerra Rollup Sub LLC (N/A), SkyTerra Investors LLC (N/A), TMI Communications Delaware, Limited Partnership (4456), LightSquared GP Inc. (6190), LightSquared LP (3801), ATC Technologies,LLC (3432), LightSquared Corp. (1361), LightSquared Finance Co. (6962), LightSquared Network LLC (1750), LightSquared Inc. of Virginia (9725), LightSquared Subsidiary LLC (9821), Lightsquared Bermuda Ltd. (7247), SkyTerra Holdings (Canada) Inc. (0631), SkyTerra (Canada) Inc. (0629) and One Dot Six TVCC Corp. (0040). The location of the debtors’ corporate headquarters is 450 Park Avenue, Suite 2201, New York, NY 10022. 2 Capitalized terms not otherwise defined herein shall have the meanings ascribed to them in the Application.

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herein. Qualifications of Gibson Dunn 2. Gibson Dunn is a leading international law firm with a client roster that

includes many of the world’s leading public companies, financial institutions, and Fortune 500 corporations. Gibson Dunn’s litigation department is widely recognized as one of the best in the United States and has been recognized as “Litigation Department of the Year” two times in a row by The American Lawyer. Gibson Dunn’s Administrative Law and Regulatory Practice Group includes a number of lawyers with high-level government experience, including former general counsels to the EPA, Department of Labor (Solicitor of Labor), and Department of Justice (Assistant Attorney General, Office of Legal Counsel); and lawyers who have held top legal, policy, and enforcement positions at the FTC, SEC, and other agencies. Lawyers in the Administrative Law group work closely with the firm’s Appellate and Constitutional Law Practice Group, whose experience in the U.S. Supreme Court and the federal and state appellate courts is widely recognized to be among the very best in the country. And when, as here, an agency’s actions warrant Congressional scrutiny, the Firm’s Legislative Counsel and Government Relations Practice Group provides sophisticated expert assistance. 3. Prior to the Petition Date, Gibson Dunn represented LightSquared as its

litigation counsel in connection with ongoing proceedings before the Federal Communications Commission (the “FCC”). Gibson Dunn is familiar with LightSquared’s operations, including its history, the nature of LightSquared’s FCC licenses and authorizations, the scope of its satellite and ATC authority, its investment in a national broadband network, its various FCC filings, and its spectrum-related policy objectives. Gibson Dunn is also well-versed in the FCC’s proposed revocation of LightSquared’s conditional waiver order and rescission of LightSquared’s ATC

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authorization and the proceedings conducted to date in connection with those proposed actions, and with LightSquared’s request for a declaratory ruling regarding protection for GPS operators operating in LightSquared’s band. Attorneys at Gibson Dunn have worked closely with LightSquared’s executives and attorneys in preparing FCC filings and have been integrally involved in researching legal arguments and supplementing the agency record in an effort to avoid an adverse determination by the FCC. Gibson Dunn has also played a central role in developing and preserving LightSquared’s arguments for purposes of appealing any adverse determination. Therefore, the Debtors have determined that continuing to engage Gibson Dunn to perform the services described in the Engagement Letter will significantly aid the Debtors and their management in their efforts, among other things, to maximize the value of their estates. 4. I believe that I, Eugene Scalia, and other Gibson Dunn professionals are

well-suited to provide the legal services required by the Debtors. Scope of Services 5. Pursuant to the Engagement Letter, Gibson Dunn professionals will

perform the following services on behalf of the Debtors, at the direction of the Debtors’ management:      Conduct legal research related to the FCC proceedings and LightSquared’s potential responses to FCC action; Prepare memoranda on legal claims related to the FCC proceedings and issues for appeal in the event of an adverse determination by the FCC; Review documents produced in response to requests under the Freedom of Information Act; Prepare FCC filings and other legal documents on behalf of LightSquared; Develop and implement strategies to achieve policy objectives in Congress and before particular federal agencies;

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  

Develop and supplement the record before the FCC for purposes of an appeal of any adverse FCC determinations; Represent LightSquared in any FCC hearing, petition for stay, or appellate proceeding; and Perform all other legal services for the Debtors that may be necessary. Lack of Conflicts of Interest and Eligibility

6.

In connection with the proposed employment and retention of Gibson

Dunn by the Debtors, Gibson Dunn undertook a conflicts analysis process to determine whether it had any conflicts or other relationships that might cause it to represent or hold an interest adverse to the Debtors’ estates. 7. To check and clear conflicts, and in preparing this Declaration, Gibson

Dunn used a set of procedures that it has developed to ensure compliance with the requirements of the Bankruptcy Code and the Bankruptcy Rules regarding the retention of professionals in chapter 11 cases. Pursuant to these procedures, at my direction during the week of May 21, 2012, Gibson Dunn performed the following actions to determine whether Gibson Dunn or any of its attorneys has any connections with, has in the past represented, or is currently representing potential parties in interest in the Chapter 11 Cases: (a) A list of Interested Parties was created using information provided by the Debtors. The list of Interested Parties is comprised of the entities identified in Schedule 1, which is attached hereto.3 Gibson Dunn compared each of the Interested Parties to the names that Gibson Dunn maintains in its master client database created from its conflict clearance and billing records. Gibson Dunn’s client database includes: (i) the name of each current or former client; (ii) the names of any entities materially related to, or

(b)

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The names of certain additional interested parties that are contract counterparties with the Debtors or that provided professional services to the Debtors were given to Gibson Dunn as well. Gibson Dunn is in the process of running the names of these parties through its client database and will file a supplemental declaration disclosing the identities of such individuals and entities that Gibson Dunn represents.

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materially adverse to, such current or former client; and (iii) the names of the Gibson Dunn attorneys responsible for such current or former clients; (iv) the status of the matter as either “active” or “inactive”; and (v) the dates on which the matter was opened and/or closed; and (c) Any matches between the Interested Parties and the entities in Gibson Dunn’s client database were identified, reviewed by an attorney and compiled for purposes of this Declaration. To the extent that Gibson Dunn currently represents, or has represented within the last three years, any of the Interested Parties, the identities of such entities and, for current clients, a brief description of the type of work performed by Gibson Dunn for the clients, are set forth in Schedule 2, which is attached hereto. In determining whether a client is presently represented by Gibson Dunn, Gibson Dunn relied on the existence of an “active” notation on the report to reflect current representation. With respect to matters showing as “inactive”, Gibson Dunn relied on the “close date” to determine whether the representation occurred within the past three years. If an “inactive” matter opened prior to May 21, 2009 showed no “close date,” Gibson Dunn assumed for purposes of this disclosure that the matter was inactive during the past three years and did not include the client on Schedule 2. If an “inactive” matter was opened on or after May 21, 2009 but showed no “close date,” the client is included on Schedule 2. 8. Based on that search, Gibson Dunn represents that, to the best of its

knowledge, Gibson Dunn knows of no fact or situation that would represent a conflict of interest for Gibson Dunn with regard to the Debtors on the matters for which Gibson Dunn is proposed to be retained. Gibson Dunn, however, wishes to disclose the following:  Gibson Dunn represents Philip A. Falcone in connection with certain “Wells Notices” that were issued by the SEC staff. Mr. Falcone is Chief Executive Officer and Chairman of the Board of Directors of Harbinger Group Inc. (“HGI”). Mr. Falcone is also the Chief Investment Officer of Harbinger Capital Partners, which is the investment advisor to the Harbinger funds that indirectly own the Debtors. Gibson Dunn represents certain entities (and certain principals of those entities) that directly or indirectly hold equity interests in the Debtors in connection with litigation brought against such funds and principals in the United States District Court for the Southern District of New York (Case No. 12-CV-1244). Gibson Dunn reserves the right to supplement this Declaration in the event

9.

that Gibson Dunn discovers any facts bearing on matters described in this Declaration regarding

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Gibson Dunn’s employment by the Debtors. Professional Compensation 10. Subject to approval by the Court, Gibson Dunn has agreed with the

Debtors to the following hourly billing rates for services rendered by Gibson Dunn professionals:4 Name Theodore B. Olson Eugene Scalia Michael Bopp John Bash Ashley Boizelle Derek Lyons Sam Dewey David Fotouhi 11. Position Partner Partner Partner Associate Associate Associate Associate Associate Rate US $1,800 US $980 US $765 US $640 US $555 US $555 US $515 US $445

The above-listed rates are the normal hourly rates charged by Gibson

Dunn professionals. This includes the hourly rate charged by Theodore B. Olson. Selected by Time magazine in 2010 as one of the 100 most influential people in the world, Mr. Olson is one of the nation’s premier appellate and United States Supreme Court advocates. He has argued 58 cases in the Supreme Court, including the two Bush v. Gore cases arising out of the 2000 presidential election, and Citizens United v. Federal Election Commission, prevailing in over 75% of those arguments. As Solicitor General of the United States during the presidency of George W. Bush, Mr. Olson was the Government’s principal advocate in the United States Supreme Court, responsible for supervising and coordinating all appellate litigation of the United States, and a legal adviser to the President and the Attorney General. As Assistant Attorney General for the Office of Legal Counsel during the Reagan Administration, Mr. Olson was the

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Other Gibson Dunn professionals may provide services to the Debtors at their ordinary hourly billing rates.

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Executive Branch’s principal legal adviser, rendering legal guidance to the President and to the heads of the Executive Branch departments on a wide range of constitutional and federal statutory questions, and assisting in formulating and articulating the Executive Branch’s position on constitutional issues. Mr. Olson has served as private counsel to two Presidents, Ronald W. Reagan and George W. Bush, in addition to serving those two Presidents in high-level positions in the Department of Justice. He has twice been awarded the United States Department of Justice’s Edmund J. Randolph Award, its highest award for public service and leadership, and also received the Department of Defense’s highest civilian award for his advocacy in the courts of the United States, including the Supreme Court. Most recently, Mr. Olson was named as one of five finalists for “Litigator of the Year” by The American Lawyer. As a consequence of his extensive and unique experience, Mr. Olson is in high demand among clients and potential clients and therefore commands, as his normal hourly rate, an hourly rate at a premium to other lawyers. 12. In addition to compensation for professional services rendered by Gibson

Dunn professionals, Gibson Dunn will seek reimbursement for reasonable and necessary expenses incurred in connection with the Chapter 11 Cases, including, but not limited to, travel, lodging, computer research, messenger services, and telephone charges. 13. Gibson Dunn intends to maintain detailed, contemporaneous time records

(in 1/10th of an hour increments) and apply to the Court for payment of compensation and reimbursement of expenses in accordance with applicable provisions of the Bankruptcy Code, the Bankruptcy Rules, the Local Rules, and any additional procedures that may be established by the Court in the Chapter 11 Cases. Gibson Dunn has agreed to accept as compensation such sums as may be allowed by the Court and understands that interim and final fee awards are

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subject to approval by this Court. 14. Prior to the Petition Date, Gibson Dunn received retainer funds (the

“Retainer”) from the Debtors for services to be rendered and for reimbursement of expenses to be incurred by the Debtors. As of the Petition Date, the remaining amount of the Retainer was approximately $560,000. 15. Due to the ordinary course and unavoidable reconciliation of fees and

submissions of expenses immediately prior to, and subsequent to, the Petition Date, Gibson Dunn may have incurred but not billed fees and reimbursable expenses, which relate to the prepetition period. 16. To the best of my knowledge, (a) no commitments have been made or

received by Gibson Dunn with respect to compensation or payment in connection with the Chapter 11 Cases other than in accordance with applicable provisions of the Bankruptcy Code and the Bankruptcy Rules, and (b) Gibson Dunn has no agreement with any other entity to share with such entity any compensation received by Gibson Dunn in connection with these Chapter 11 Cases. Disclosure of Compensation 17. In the 12 months prior to the filing of the Chapter 11 Cases, Gibson Dunn

billed, and received payments from, the Debtors in the aggregate amount of approximately $866,605.25 for professional services rendered and expenses incurred.

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Pursuant to section 1746 of title 28 of the United States Code, I declare under penalty of perjury under the laws of the United States of America that the foregoing is true and correct to the best of my knowledge, information, and belief. Dated: Washington, D.C. May 29, 2012 /s/ Eugene Scalia Eugene Scalia Partner Gibson, Dunn & Crutcher LLP

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Schedule 1

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Schedule 1 INTERESTED PARTIES SEARCHED IN CONFLICT DATABASE Debtor Entities and Affiliates LightSquared Inc. LightSquared Investors Holdings Inc. One Dot Four Corp. One Dot Six Corp. SkyTerra Rollup LLC SkyTerra Rollup Sub LLC SkyTerra Investors LLC TMI Communications Delaware, Limited Partnership LightSquared GP Inc. LightSquared LP ATC Technologies, LLC LightSquared Corp. LightSquared Finance Co. LightSquared Network LLC LightSquared Inc. of Virginia LightSquared Subsidiary LLC SkyTerra Holdings (Canada) Inc. SkyTerra (Canada) Inc. One Dot Six TVCC Corp. TVCC Holding Company, LLC TVCC Intermediate Corp. Columbia One Six Partners IV, Inc. Columbia FMS Spectrum Partners IV, Inc. TVCC One Six Holdings LLC CCMM I LLC Lightsquared Bermuda Ltd. LightSquared (UK) Limited

Current and Former Directors and Officers Sanjiv Ahuja Omar Asali Mark Danchak Keith Hladek Robert Lambert David Maura James McGinnis David Murgio Jung Ho Park Robin Roger Marc Montagner Curtis Lu Beth Creary Kurt Haufler Philip Falcone Peter Jenson Lawrence Clark Jose A. Cecin, Jr. Alexander H. Good Jeffrey Killeen Paul S. Latchford William Stasior Michael Weiner Scott MacLeod Gary Epstein Randy Segal Dion Oglesby Michael Montemarano Jeff Carlisle Frank Boulben Douglas Smith Jeff Snyder Drew Caplan Peter Karabinis John H. Mattingly Susan Miller Randy Segal Jeffrey Killeen Paul S. Latchford, Jr. Gary M. Parsons William Stasior Jose A. Cecin, Jr. Jennifer Mannger Alison R. Guilfoyle David Doyle Charles G. Collis

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Deborah Hubbard-Taylor Dawna Ferguson Mirko Bibic Barry Chapman Martin Cossette

Curtis Millen Bahman Azarbar Jim Wiseman Steve Olive Martin Harriman Lenders and Agents

Akanthos AllianceBernstein Alpine Appaloosa Balantrove Bank of America, N.A. BBT Fund Brencourt Candlewood Capital Res Castle Creek Centaurus Citigroup Financial Products Credit Value Cyrus Capital Driehaus FeingoldFortress Fortress Goldman - Lending Partners HarbingerMast - Mast Ak Fund LP Hudson Bay Icahn J. Goldman Jefferies JHL Cap JPMorgan Chase, N.A. King Street

Knighthead Lnv Corporation Longacre Manulife Mariner Mast Onex Owl Creek Perella Weinberg Providence Putnam Redwood Royal Bank of Scotland Seatown - Mantaray Investments Seawall Seix Senator Global Silver Point Solus Sound Point Taconic U.S. Bank UBS Watershed Am Wayzata Wilmington Trust

Potential Unsecured Creditors 24/7 Mid Atlantic Network, LLC Abovenet Communications Inc Ace Fire Extinguisher Services Inc. Acuative Corporation Alcatel-Lucent Amazon Web Services LLC Articulate Global Inc Bandrich Inc Beehive Research Inc Boeing Satellite Systems Inc Boris Blatnik Bruden Corporation Burson-Marsteller Celplan Technologies Ceridian Life Works Services Cintas Corp

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Cloud Sherpas Inc Cole International Inc Compass Group Canada (Beaver) Concur Technologies Inc Corporate Express Crown Castle USA Inc Cyberbridge International Inc Edgar Online Inc Electro Rent Corporation Epi-Colorspace Exchange My Mail, Inc Federal Airways & Airspace Fedex GCA Services Group Inc Greenwood Telecommunications Consultants Icimscom Imperial Coffee and Services Inc Inmarsat Global Limited Institute Of Electrical and Electronic Engineers Intertek Testing Services NC Inc Iron Mountain - MSV JHG Stafford Innovations John Hancock Life Insurance Co Leica Geosystems Inc Liebert Services Inc Marcus Spectrum Solutions LLC Mehlman Capitol Strategies Mobile Frontiers LLC Mobile Impact LLC Navtechgps Nextg Networks Inc Ni Government Services Inc

Nokia Siemens Networks US LLC Nortec Communications Inc Oracle Inc Orbit Logistics Parker Interior Landscape, Inc. Parscom Management PBM LLC PC Connection Sales Corporation Pitney Bowes Podesta Group, Inc Polaris Logistics Potomac Disposal Services Radian6 Technologies Inc Reston Limousine & Travel Services, Inc Royal Cup Inc Service Master Of Canada Shred-It Simplexgrinnell Lp Skymira LLC SNI Companies Corp Sovereign Service Corp St Joseph Digital Solutions Telesat Canada The Ra Centre- Le Centre Ra The Will-Burt Company Tra-Cal LLC Triton Security Inc TRS-REN Telco United Parcel Service Velocity Telecom Vertex Inc W B Mason Washington Express Wired Synergy Inc Landlords

APA Properties No 10 LP Intelsat SED Systems Utilities 450 Park Avenue LLC Alaska Communications Allstream AT&T AT&T Global Services Canada Co Bell Canada Bell Mobility Inc Enbridge Inc.

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Genesys Conferencing Hydro Ottawa Intrado Inc Level 3 Communications LLC Neustar Inc Pensionfund Rogers Business Solutions Westar Satellite Services LP

Rogers Communications Sprint Sprintcom Inc Telus Telus Mobility Verizon

Insurance Brokers Aon Financial Services Group Willis Inspace Willis North America Willis of Maryland Inc. Insurance Carriers Ace Aioi Nissay Dowa Arch Argo Asia Capital Re Atrium Axa Corp Brit C.N.A. Chartis Chaucer Chubb Global Hiscox Houston Casualty Inter Hannover Kiln Liberty Mitsui Munich Re Navigators Partner Re RSUI Satec Sciemus Scor SpaceCo Starr Tokio Marine Torus Travelers Watkins XL

Shareholders Abu Dhabi Investment Council Centaurus Capital, LP Dark Circle Investment Corp FCDB LSQ LLC HGW US Holding Company L.P. Keith Holst Providence TMT Debt Opportunity Fund II LP Providence TMT Special Situations Fund LP SIG Holdings, Inc. SK Telecom Co., Ltd. Solus Core Opportunities LP SOLUS LLC

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Schedule 2

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Schedule 2 – DISCLOSURE OF REPRESENTATION Set forth below are the Interested Parties1 (other than the Debtors and potential debtors) whom Gibson Dunn currently represents or has represented within the past three years in matters unrelated to the matters on which Gibson Dunn is proposed to be retained. Several Interested Parties fall into multiple categories below; however, each Interested Party has been listed only once. Current and Former Officers and Directors Philip A. Falcone Lenders and Agents AllianceBernstein Corp. AllianceBernstein Capital L.P. AllianceBernstein U.S. Real Estate Partners, L.P. Bank of America, N.A. Banc of America Securities LLC Bank of America Corporation Owl Creek Asset Management, L.P. Perella Weinberg Partners LP Putnam, Marvin S. Citigroup Citigroup Global Markets, Inc. Citibank, N.A. Citigroup Global Markets RBS Securities, Inc. Royal Bank of Scotland RBS Holdings USA, Inc. RBS Securities LLLC Fortress Investment Group LLP Fortress Credit Corp. Silver Point Capital, LP Goldman Sachs International Goldman, Sachs & Company Goldman Sachs & Co. Goldman Sachs Group, Inc. Solus Alternative Asset Management, LP
1

In some instances, the parties identified below may not actually be interested parties; however, their identities were sufficiently similar to the names of parties provided by the Debtors that they are included herein for completeness.

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Hudson Bay Capital Management LP Taconic Capital Advisors, LP US Bank, N.A. UBS Real Estate Securities Inc. UBS Financial Services, Inc. UBS, AG UBS Investment Bank UBS Securities UBS Securities, LLC Jefferies & Company, Inc. Jeffries, Hakim J.P. Morgan Investment Management Inc. JPMorgan Chase Bank, N.A. J.P. Morgan Chase Securities, LLC J.P. Morgan Chase & Co. J.P. Morgan J.P. Morgan Securities Wilmington Trust Corporation Potential Unsecured Creditors Boeing Services International Boeing Company Amazon.com, Inc. Burson Marsteller Oracle Deutschland B.V. & Co. KG Oracle Racing, Inc. Pitney Bowes Inc. Sovereign Bank Sovereign Bancorp, Inc. Sovereign Coal Sales, Inc. JHG Texas Corporation United Parcel Service, Inc. Utilities AT&T Global Network Services AT&T Mobility LLC Sprint Nextel Corp. L-3 Communications Corporation L-3 Services, Inc. Unidyne Division Verizon New England, Inc. Verizon Communications Neustar Inc.

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Insurance Carriers Liberty Mutual Insurance Company AXA SA CNA Pro Insurance CNA Pro Open Brokerage Chartis Insurance Chartis Insurance Co. AKA Worldsource, Inc. Chartis Warranty Services, Inc. Chartis Warrantyguard, Inc. Hiscox Insurance Co. The Travelers Companies, Inc. Shareholders SK Telecom Co., Ltd. Solus Core Opportunities LP SOLUS LLC

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Exhibit B Engagement Letter

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Exhibit C Proposed Order

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UNITED STATES BANKRUPTCY COURT SOUTHERN DISTRICT OF NEW YORK In re: LIGHTSQUARED INC., et al., Debtors.1 ) ) ) ) ) ) ) Chapter 11 Case No. 12-12080 (SCC) Jointly Administered

ORDER PURSUANT TO SECTIONS 327(e) AND 328 OF THE BANKRUPTCY CODE FOR AN ORDER AUTHORIZING THE DEBTORS TO RETAIN AND EMPLOY GIBSON DUNN AS SPECIAL LITIGATION COUNSEL NUNC PRO TUNC TO THE PETITION DATE Upon the application (the “Application”)2 of LightSquared Inc. and certain of its affiliates, as debtors and debtors in possession (collectively, the “Debtors”) in the abovecaptioned chapter 11 cases (the “Chapter 11 Cases”), for entry of an order (the “Order”), authorizing the Debtors to employ and retain Gibson, Dunn & Crutcher LLP (“Gibson Dunn”) as special litigation counsel on the terms set out in the Application, nunc pro tunc to the Petition Date, pursuant to sections 327(e), 328(a) and 330 of title 11 of the United States Code (the “Bankruptcy Code”), Rules 2014(a) and 2016 of the Federal Rules of Bankruptcy Procedure (the “Bankruptcy Rules”) and Rule 2014-1 of the Local Rules for the United States Bankruptcy Court for the Southern District of New York (the “Local Rules”); and upon the Scalia Declaration
1 The debtors in these chapter 11 cases, along with the last four digits of each debtor’s federal or foreign tax or registration identification number, are: LightSquared Inc. (8845), LightSquared Investors Holdings Inc. (0984), One Dot Four Corp. (8806), One Dot Six Corp. (8763), SkyTerra Rollup LLC (N/A), SkyTerra Rollup Sub LLC (N/A), SkyTerra Investors LLC (N/A), TMI Communications Delaware, Limited Partnership (4456), LightSquared GP Inc. (6190), LightSquared LP (3801), ATC Technologies,LLC (3432), LightSquared Corp. (1361), LightSquared Finance Co. (6962), LightSquared Network LLC (1750), LightSquared Inc. of Virginia (9725), LightSquared Subsidiary LLC (9821), Lightsquared Bermuda Ltd. (7247), SkyTerra Holdings (Canada) Inc. (0631), SkyTerra (Canada) Inc. (0629) and One Dot Six TVCC Corp. (0040). The location of the debtors’ corporate headquarters is 450 Park Avenue, Suite 2201, New York, NY 10022. Capitalized terms used but not otherwise defined herein shall have the meanings set forth in the Application.

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attached to the Application as Exhibit A; and the Court having considered the Application and the Scalia Declaration and determined that the employment of Gibson Dunn by the Debtors is in the best interests of the Debtors’ estates, their creditors and other parties in interest; and the Court being satisfied that Gibson Dunn neither holds nor represents any interest adverse to the Debtors’ estates with respect to the matters upon which it is to be employed; and it appearing that this Court has jurisdiction over this matter pursuant to 28 U.S.C. § 1334; and it appearing that this proceeding is a core proceeding pursuant to 28 U.S.C. § 157(b)(2); and it appearing that venue of this proceeding and the Application in this Court is proper pursuant to 28 U.S.C. §§ 1408 and 1409; and notice of the Application appearing adequate and appropriate under the circumstances; and the Court having found that no other or further notice is needed or necessary; and the Court having heard statements in support of the Application at a hearing held before the Court (the “Hearing”); and the Court having determined that the legal and factual bases set forth in the Application and at the Hearing establish just cause for the relief granted herein; and it appearing, and the Court having found, that the relief requested in the Application is in the best interests of the Debtors’ estates, their creditors and other parties in interest; and any objections to the relief requested in the Application having been withdrawn or overruled on the merits; and after due deliberation and sufficient cause appearing therefor, it is hereby ORDERED that, 1. 2. The Application is granted as set forth below. In accordance with sections 327(e) and 328 of the Bankruptcy Code,

Bankruptcy Rule 2014, and Local Rule 2014-1, the Debtors are authorized to employ and retain Gibson Dunn nunc pro tunc to the Petition Date as the Debtors’ special litigation counsel on the terms set forth in the Engagement Letter. 3. Gibson Dunn shall file fee applications for interim and final allowance of

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compensation and reimbursement of expenses pursuant to the procedures set forth in Sections 330 and 331 of the Bankruptcy Code; provided, however, that Gibson Dunn shall be compensated in accordance with the terms of the Engagement Letter, and subject to the procedures set forth in the Bankruptcy Code, the Bankruptcy Rules, the Local Rules, any guidelines promulgated by the office of the United States Trustee, and any other applicable orders of this Court. 4. Gibson Dunn shall apply the Retainer to all amounts approved by the

Court to be paid to Gibson Dunn as compensation and reimbursement of expenses until the conclusion of the Chapter 11 Cases or the exhaustion of the Retainer, whichever is earlier. Gibson Dunn shall not seek direct payment of its approved and unpaid compensation and reimbursement of expenses from the Debtors until the Retainer is exhausted. 5. Ten business days’ notice must be provided by Gibson Dunn to the

Debtors, the U.S. Trustee, and any official committee prior to any increases in the rates set forth in the Application, and such notice must be filed with the Court. 6. Notwithstanding any terms of the Engagement Letter to the contrary, the

Court shall have jurisdiction over any controversy arising from or related to the Application, the Engagement Letter, or Gibson Dunn’s retention in the Chapter 11 Cases. 7. The Debtors are authorized and empowered to take all actions necessary to

implement the relief granted in this Order. 8. The terms and conditions of this Order shall be immediately effective and

enforceable upon its entry. 9. This Court shall retain jurisdiction with respect to all matters arising from

or relating to the interpretation or implementation of this Order.

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Dated: _____________, 2012 New York, New York

____________________________________ UNITED STATES BANKRUPTCY JUDGE

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