It's down to the wire for LightSquared and its financial backers.
The company's creditors granted a one week extension to prevent LightSquared from defaulting on its debts, with a new deadline set for Monday. Depending on negotiations that could last all weekend, LightSquared could face bankruptcy as soon as Monday.
In February the fortunes of LightSquared and its backers collapsed after the Federal Communications Commission blocked the company's plan to build a nationwide wireless network. LightSquared's CEO has already resigned, and creditors forced billionaire financier Philip Falcone, who is LightSquared's main backer, to leave the board and executive committee.
LightSquared and its creditors, who include billionaire investor Carl Icahn and hedge fund manager David Tepper as well as hedge funds Fortress Investment Group, Knighthead Capital Management, Redwood Capital Management and investment firm Capital Research and Management Co., are wrangling over about $1.6 billion in debt.
Government tests showed LightSquared's planned transmissions would interfere with global positioning systems.