LightSquared’s lenders says Philip Falcone’s Harbinger Capital Partners won’t hand over documents they are requesting as part of an investigation over whether they can pursue claims against Harbinger and the wireless satellite company. In a Tuesday filing with U.S. Bankruptcy Court in Manhattan, lawyers for a group of LightSquared lenders owed more than $1 billion said it “appears” LightSquared received “preferential” loans last summer without any investment by Harbinger, which owns most of LightSquared’s stock and has four of the company’s six board seats. The lender group says it has the right to subpoena Harbinger as part of its June agreement to allow LightSquared to use cash secured by its loans. But Harbinger, it says, has refused. “Harbinger’s basis for its blanket refusal is that ‘as these cases progress, it will become clear that sufficient value exists to pay all creditors in full under a Chapter 11 plan,'” said the lenders, whose loans are secured by all of LightSquared’s assets. [DowJones]

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Comments (10)

  1. Posted by L^2 Creditors | August 1, 2012 at 3:00 PM

    Challenge accepted!

  2. Posted by Guest | August 1, 2012 at 3:03 PM

    Light Squared must merge with UBS in order to survive

  3. Posted by guest | August 1, 2012 at 3:34 PM

    Well, he hasn't commented on this one yet… maybe zombie guy took UBS rap quant's advice!

  4. Posted by Guest | August 1, 2012 at 4:10 PM

    Laying on the ice with his teeth knocked out and a 6" head wound spurting blood, Phil Falcone continues fighting.

  5. Posted by Zompork | August 1, 2012 at 4:16 PM

    Wilbur's brains have made me stronger than ever.

  6. Posted by Guest | August 1, 2012 at 4:43 PM

    It's just a flesh wound

  7. Posted by harrybalzer | August 1, 2012 at 4:54 PM

    Of course it's all there, I just told you it was.

  8. Posted by Not Phil Honest | August 1, 2012 at 5:30 PM

    Wait – if I eventually go tits up in some bizarre seizure of my personal assets against what I've done at Harbinger, could the trustee theoretically take Lisa as an asset?

  9. Posted by el guesto | August 1, 2012 at 6:31 PM

    No, she's a liability…

  10. Posted by Funskip | September 4, 2012 at 5:20 AM

    Muchos Gracias for your article post.Really looking forward to read more. Really Great.