LightSquared Seeks Ch. 11 As Lenders Tighten $1.7B Noose

Law360, New York (May 14, 2012, 4:58 PM EDT) -- LightSquared Inc., the struggling wireless startup backed by hedge fund billionaire Philip Falcone, filed for bankruptcy protection in New York federal court Monday, just hours before time ran out to renegotiate terms of its $1.7 billion debt.

LightSquared, which faces a congressional probe and investor lawsuit after its plans to build a nationwide 4G network ran afoul of telecom regulators, listed $4.48 billion in assets and $2.29 billion in liabilities in its Chapter 11 petition.

The voluntary filing gives LightSquared "sufficient breathing room to continue working...
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