LightSquared Reaches Loan Agreement, Negotiating Cash Use

LightSquared reached an agreement with one group of lenders for a loan and is in talks with other debt holders to use their cash collateral in a bid to avoid liquidation.

LightSquared is seeking permission from a group that owns $1.1 billion of debt in its so-called LP unit to use $190 million in collateral, the lawyer, Matthew Barr, told U.S. Bankruptcy Judge Shelley Chapman in Manhattan today. Chapman adjourned the hearing until tomorrow to allow the parties more time to negotiate after saying a productive meeting took place today during a court break.