Fremont: With Sanjiv Ahuja resigning as the CEO and the Executive VP of the company, the light for LightSquared, a wholesale-only integrated 4G-LTE wireless broadband and satellite network in the U.S., is on the verge of switching off.

Hedge fund manager Philip Falcone said that the company is considering filing for voluntary bankruptcy. He said that it is one of the several options that he is considering as he tries to find a way to salvage the company. The company reported a loss of $427 million during the first nine months of 2011. He adds that the company has enough cash to get through the year and he had no timing in mind for a possible bankruptcy. He also adds that a bankruptcy would not necessarily wipe out the equity holders of LightSquared as the spectrum it owns retains value.

Earlier in February this year, the Federal Communications Commission took steps to shut the doors of the company. LightSquared was granted permission under the Bush administration to launch an innovative new wireless network combining satellites and cell towers. With the initial approval, the company began its $14 billion build-out of the network years ago. However, compliance with numerous FCC conditions and regulations, and years of planning, the Obama administration’s FCC announced it plans to vacate the decision it made seven years ago, shutting down all of LightSquared’s operations before the network could even be launched. This was another jolt for the company. The biggest setback came in March this year, when its $9 billion 15-year agreement with Sprint-Nextel to build and host its LTE network fell through. Also, all of their major clients have terminated their agreements.

The company was the highest venture fund raising startup of 2011. It raised $264 million from Spectrum Assets and Harbinger Capital Partners.