Heat Turned Up on Falcone

As Philip Falcone's LightSquared nears a critical deadline, some of the wireless company's creditors are pressing the hedge-fund manager to step away from the venture on which he has staked his fortune and reputation.

These lenders want Falcone -- the founder of Harbinger Capital Partners LLC, which is LightSquared's main backer -- to bow out as the public face of the firm as a condition for avoiding a looming debt default. The lenders and Falcone's representatives are in talks to extend a waiver on debt-term violations that expires April 30. If Falcone doesn't agree to eventually leave LightSquared's board and make way for new executives and directors at the wireless-communications firm -- as well as make some other concessions -- some lenders are likely to balk and the company could end up filing for bankruptcy protection.