Philip Falcone's telecom start-up LightSquared edged closer to a bankruptcy filing as the hedge fund manager was far from an agreement with creditors, Reuters reported yesterday. Falcone has until today at 5 p.m. ET to reach an agreement or face a default on a $1.6 billion loan. Creditors have been negotiating to restructure LightSquared's 96 percent ownership by Falcone's Harbinger Capital Partners. Debt holders could have declared a default on the loan, which would have forced a bankruptcy, if there was no agreement by April 30. The deadline has been extended twice.
