LightSquared’s path toward exiting bankruptcy will reach a key milestone on Monday as scheduled, despite the recent introduction of a hedge-fund firm’s rival exit plan that threatened to once again disrupt the contentious chapter 11 case, the Wall Street Journal reported today. Bankruptcy Judge Shelley Chapman said on Wednesday that she will begin hearing evidence on Monday morning from LightSquared on why its current restructuring plan should be confirmed by the court. The hearings are expected to last the majority of the week and possibly spill into the next. Last week, Solus Alternative Asset Management LP introduced its own proposal for the company’s future. The firm said that its plan to pump $2 billion into Philip Falcone’s wireless venture is better than the one the company has presented, which involves little new money and puts the company in the hands of investors including Centerbridge Partners LP and Fortress Investment Group LLC.
