A section of LightSquared Inc. lenders are opposing the company's decision to seek a new financing arrangement as part of its plan to exit bankruptcy, Reuters reported today. LightSquared in December proposed a new bankruptcy exit plan with financing from Fortress Investment Group and other backers, as the U.S. wireless communications company seeks to avoid a sale to highest bidder Dish Network Corp. The new plan replaced one based on an auction of the company's assets. LightSquared scrapped that sale after Dish emerged as the only qualified bidder, with a $2.2 billion offer and terms that LightSquared found unappealing. LightSquared had asked to be allowed to implement the new plan without going back to creditors to get their approval, saying that the latest deal increases the recovery for creditors. However, lenders including US Bank and MAST Capital Management said yesterday that the new arrangement violates an earlier deal, which prohibited LightSquared from seeking alternative financing unless the creditors were first paid in full.
