Phil Falcone Feels Like He Needs To Take A Restraining Order Out On LightSquared Lenders
LightSquared's lenders on Tuesday will take their fight to probe the troubled wireless venture's main backer, Philip Falcone's Harbinger Capital Partners, to a bankruptcy judge. The lenders, which are owed more than $1 billion, are eyeing loans LightSquared took out last summer from Harbinger, which owns most of LightSquared's stock and has four of the company's six board seats. The lenders say the loans appear to be "insider" deals that deserve scrutiny and might even be eligible to be unwound through litigation, a move that could boost the lenders' own standing in the line of creditors waiting for payment in LightSquared's Chapter 11 case. Harbinger is fighting the proposed investigation, which it says the lenders are pushing in a bid to "embarrass" and "harass" the hedge fund. It said the alleged red flags the lenders see in the loans "are utter nonsense comprised of baseless and disingenuous allegations or flat out misstatements." [WSJ]