LightSquared Lenders Object to Independent Committee's Board Selection

Lenders to LightSquared questioned the selection of an independent director to help oversee a sale of the wireless telecom company. The lenders in bankruptcy court papers claim the director, Donna Alderman, isn't independent because she previously sparred with Dish Network, which is offering $2.22 billion for LightSquared. The lenders said in the court papers that Alderman has a "troubled history" with Dish Chairman Charlie Ergen and "his affiliates." Representatives for the lenders and Dish have also privately expressed concerns to LightSquared about the selection of Alderman, according to people familiar with the discussions. LightSquared's lenders, owed about $1.7 billion, have an interest in seeing Dish's bid accepted, as it would repay them in full with interest. The lenders include hedge funds that bought LightSquared debt at a discount. A bankruptcy judge is set to hold a hearing on Sept 24 to review rules governing LightSquared's expected auction later this year.