Report: Falcone considers bankruptcy for LightSquared

ADVERTISEMENT

Falcone reportedly said bankruptcy is only one option but that it would give the company time to address the interference problems.

He emphasized that LightSquared's wireless airwave licenses are still valuable.  

House Republicans are investigating the FCC over its review of LightSquared. The lawmakers question why the agency allowed LightSquared to get as far as it did in the regulatory process.

Sen. Chuck GrassleyCharles (Chuck) Ernest GrassleyThe Hill's Morning Report - Sponsored by AdvaMed - House panel expected to approve impeachment articles Thursday Horowitz did not find evidence Obama asked for probe of Trump Live coverage: DOJ inspector general testifies on Capitol Hill MORE (R-Iowa) has blocked President Obama's two nominees to the FCC in an effort to force the agency to release its internal records on the company.

Some Republicans have questioned whether the FCC and the White House showed inappropriate favoritism to LightSquared, and have compared the case to the bankruptcy of failed solar firm Solyndra, which had received a government loan. Last September, Rep. Michele BachmannMichele Marie BachmannMellman: The 'lane theory' is the wrong lane to be in White House backs Stephen Miller amid white nationalist allegations Klobuchar urges CNN town hall audience: 'That's when you guys are supposed to cheer, OK?' MORE (R-Minn.) accused Obama of "crony capitalism" for allegedly giving favor to his political supporters, pointing to Falcone, who has invested billions of dollars in the company. 

Falcone has donated to both Democrats and Republicans in recent years and says he is a registered Republican. He has denied any attempts to influence the process through political connections. 

The White House and the FCC have denied giving any special treatment to LightSquared, but expanding highspeed Internet access is a top priority of both agencies.