LightSquared Founder Philip Falcone To Step Down

In an effort keep the troubled LightSquared from the brink of defaulting on its debt, its founder will step down from the company. While it doesn't look immediate, it's Philip Falcone's latest attempt to extend a debt-term violation that expires this morning. According to the same sources, if the initial extension is okayed, Falcone and LightSquared's lenders are aiming for a greater period of around 18 months to repay $1.6 billion in loans and pass the FCC's requirements for its network. The company's board is still deliberating on whether to accept the deal, which would stop the company filing for bankruptcy protection. Unfortunately, it looks like those new 4G network dreams just got hazier.

Falcone Considering Bankruptcy For LightSquared

Hedge fund manager Phil Falcone said he is considering seeking bankruptcy protection for his wireless network company LightSquared Inc., a venture that has consumed billions of dollars from his funds and has become a difficult sticking point with his investors.

A bankruptcy filing is "one of the options I am considering," Mr. Falcone said in an e-mail, saying it's the "best way" for him to maintain control of the company. "Spectrum value does not decrease in bankruptcy,"