Philip Falcone’s LightSquared Inc. shouldn’t be allowed to run its own bankruptcy auction, a group of lenders said, citing depleted cash, a changing industry and a controlling shareholder who wants to block the sale, Bloomberg News reported yesterday. The lenders, a trustee or an independent committee should conduct the planned asset auction, the lenders said in a filing yesterday in court. Since the chapter 11 case began, LightSquared’s cash has dwindled by $125 million to about $61 million, Steve Zelin of financial adviser Blackstone Group LP said in support of the lenders.
