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Judge Rejects Proposed Member of LightSquared Auction Committee

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Bankruptcy Judge Shelley Chapman blocked a proposed appointee to a committee to oversee the bankruptcy auction of broadband company LightSquared LP, citing a conflict of interests, and admonished the company for making the nomination, Reuters reported yesterday. Donna Alderman cannot be part of the committee because she could be seen as having a bias against satellite television company Dish Network Corp., which is seeking to acquire LightSquared's spectrum, Judge Chapman said. Alderman, a former director at satellite operator DBSD, lost her job when Dish acquired DBSD in 2011, then unsuccessfully sought $7 million from Dish for her role in generating value for DBSD's estate. She ended up with $750,000 in severance.