Harbinger’s LightSquared Says Tests ‘Rigged’, Not Raising Capital

HARBINGERLightSquared, the wireless company trying to develop a nationwide 4G system, said yesterday that the recent tests conducted by the Defense Department and FAA, on the viability of its 4G technology were “rigged,” reports the Wall Street Journal. The tests “found LightSquared’s network interfered with a substantial portion of GPS devices.” Instead, the company blamed the poor results “on devices that were old or out of production.”

The ongoing battle between LightSquared and Capitol Hill has spurred on some talk that LightSquared could be lacking in the resources needed to sustain it until it receives the necessary approvals from the FCC (read about it here). But, it appears that the company may be on solid ground after all.

“It isn’t seeking to raise fresh capital as it awaits FCC clearance to operate its planned 4G network,” reports the Wall Street Journal, saying instead that “it has enough funds to last several quarters.” It did not provide specifics. LightSquared also has a contract with Sprint Nextel Corp. (S) on hold until it receives the necessary approvals. The deal is worth $13.5 billion.

The lion’s share of LightSquared is owned by Harbinger Capital, the hedge fund founded and managed by Phil Falcone.