Lenders Say LightSquared Is Too Conflicted To Run Auction

Law360, New York (August 29, 2013, 4:49 PM EDT) -- A financial adviser to lenders of LightSquared Inc. on Thursday said the bankrupt wireless startup should not be permitted to run its own auction, saying the Philip Falcone-controlled company is conflicted because of Falcone’s desire to keep the company under his control.

Steven Zelin, a senior managing director of Blackstone Advisory Partners LP, offered his statement shortly after the ad hoc group of lenders asked the court for permission to conduct a bankruptcy auction for a LightSquared subsidiary’s assets in December. The LightSquared LP lenders have...
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