Probe Of Prebankruptcy LightSquared Loan Extended

Law360, New York (August 14, 2012, 6:24 PM EDT) -- The New York bankruptcy judge overseeing LightSquared Inc.'s bankruptcy extended to Sept. 28 a crucial deadline underlying a discovery dispute between Philip Falcone's hedge fund and a group of LightSquared LP lenders over allegations of prepetition insider lending.

The dispute features the ad hoc secured group of LP lenders seeking information on the so-called Inc. loan, a $280 million prepetition loan that lenders including UBS AG extended to the LightSquared Inc. parent before its bankruptcy. The lenders to the LP unit now seek to investigate allegations...
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