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]
LightSquared Creditors Seek Permission To Go After Mrs. Phil Falcone's Shoe Collection
Remember Phil Falcone? Hedge fund manager about yea high? Cuts his hair like he's still playing professional hockey? Is betting the farm on a company called LightSquared that "seeks to create connectivity for all" but in doing so might "cost 794 lives in aviation accidents over 10 years with disruptions to satellite-aided navigation" and filed for Chapter 11 bankruptcy last May? Anyway, LightSquared's creditors were in court today asking for the right to go after Big Phil/Harbinger, who they believe screwed them big time.