Bankruptcy Judge Shelley C. Chapman said that LightSquared can keep control over its chapter 11 case until at least the summer after the wireless satellite company struck a deal with lenders to involve them more closely in the reorganization process, Dow Jones Newswires reported yesterday. The extension gives LightSquared until May 31 to file reorganization plan and July 15 to solicit votes on such a plan without the threat of rival proposals. The deal, filed with the bankruptcy court on Wednesday, calls for LightSquared to only propose a reorganization plan that the lender group supports or that pays the group in full, in cash, along with other creditors. The lender group, owed about $1.1 billion, can file its own plan if LightSquared does not consult with it or if the company breaches the terms of an agreement that allows it to use cash secured by the lenders' loans.
