LightSquared Inc. filed for chapter 11 protection yesterday ahead of the expiration of a deal to keep hedge-fund manager Philip Falcone's venture from defaulting on its debt, Dow Jones Newswires reported yesterday. LightSquared reported assets and debts each exceeding $1 billion, according to the court petition. Falcone and his hedge fund Harbinger Capital Partners were LightSquared's main backer, investing billions of dollars into a venture that sought to compete with communications heavyweights like AT&T Inc. and Verizon Wireless. However, efforts to build a national network stalled as federal regulators argued the network would interfere with Global Positioning System signals. In its bankruptcy petition, LightSquared listed Boeing Satellite Systems Inc. as its biggest unsecured creditor with a disputed $7.5 million claim, followed by Alcatel-Lucent with a $7.3 million disputed claim.
