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Judge Allows LightSquared to Hire Jefferies to Seek Exit Loan

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LightSquared Inc., the wireless broadband company said to have received an offer from Dish Network Corp. Chairman Charlie Ergen, won permission to hire Jefferies Group LLC to line up financing to exit bankruptcy, Bloomberg News reported yesterday. Bankruptcy Judge Shelley Chapman approved Jefferies’s hiring yesterday, also raising questions about the identities of LightSquared’s debt owners after lawyers expressed concerns that a committee of lenders may no longer be the company’s largest debt holder. Lawyers told her that as far as they know, documents giving details about the owners of the company’s debt were still accurate.