Bankruptcy Court Judge Shelley C. Chapman yesterday extended a critical document discovery deadline to September 28 from September 11 in the LightSquared bankruptcy proceedings, Reuters reported. A group of lenders holding over $1.08 billion of secured debt at LightSquared LP, the company's main operating subsidiary, seeks to investigate the propriety of a $279 million loan extended to the holding company for LightSquared last July. At the heart of the issue is whether this loan constitutes an "insider transaction" that can be challenged, which could result in redistributing economics to other lenders. Harbinger was the key provider of this loan.
