Hedge-fund manager Philip Falcone agreed to step aside as the public face of LightSquared, as part of a deal to keep the company from defaulting on its debt, people familiar with the negotiations told the Wall Street Journal. Falcone's compromise is expected to prompt LightSquared's lenders to approve a one-week extension on a debt-term violations waiver that expires 30 April, the people said. If a deal is finalized, Falcone and LightSquared's lenders plan to continue negotiations for a longer extension of somewhere between 18 months and two years. This would prevent Lightsquared from having to file for bankruptcy protection.
