Philip Falcone’s LightSquared Inc. will borrow an additional $74 million from existing lenders to stay alive in bankruptcy after saying that it is running out of cash and may fail to reorganize without more funds, Bloomberg News reported yesterday. Bankruptcy Judge Shelley Chapman approved the wireless-spectrum owner’s loan agreement yesterday. Lenders, including a fund controlled by Dish Network Corp. Chairman Charles Ergen, will have priority rights to be repaid on the new loans. A prior order called for LightSquared to borrow as much as $80 million.
