LightSquareD bankruptcy – Harbinger strikes back

Taking aim at a group of lenders who have raised ‘red flags’ about alleged insider loans received by Chapter 11 cases and wireless company LightSquareD , Harbinger Capital Partners, owned by Phil Falcone, has said the red flags are, in fact, red herrings.

Harbinger claims that the lender group is attempting to gain an upper hand in the bankruptcy proceedings, and its restructuring by adopting dilatory tactics that would extend LightSquareD’s losses and bleed its cash.

LightSquareD is currently equity-controlled by Falcone and his Harbinger hedge fund, and went