Creditors of bankrupt wireless company LightSquared and the company's owner, Harbinger Capital Partners, will once again try to reach a mediated restructuring deal after a judge raised the prospect of converting the case to a chapter 7 liquidation, Reuters reported yesterday. With a deadline for confirming a plan just weeks away, Harbinger and two creditors, MAST Capital and JP Morgan, had crafted a plan that would carve out and hand over certain spectrum assets to creditors. Lenders who have collateral claims on LightSquared's operating assets objected, arguing the plan could derail the process for getting regulatory approval for LightSquared's spectrum.
