The judge in LightSquared Inc.’s bankruptcy has been excluding some parties from closed-door conferences, possibly hindering a resolution of the case, two companies underwriting the wireless broadband provider’s reorganization said, Bloomberg News reported yesterday. The lenders, Melody Business Finance LLC and Centaurus Capital LP, wrote a letter to Bankruptcy Judge Shelley Chapman yesterday to address what they called their “exclusion” by the court from an off-the-record conference in her chambers yesterday. Philip Falcone’s LightSquared is seeking approval of a bankruptcy exit plan that would put Dish Network Corp. Chairman Charles Ergen at the back of the line to be repaid and close a two-year battle for control of the company’s airwaves. Hearings are under way to determine the status of Ergen’s $1 billion claim and get approval of the reorganization.
