The members of an ad hoc group of secured lenders holding $1.35 billion in claims are sponsoring the plan. The proponents include Capital Research and Management ($331.18 million in debt), Cyrus Capital Partners ($134.5 million), Intermarket ($19.61 million), SP Special Opportunities ($824.32 million) and the Stamford, Conn., branch of UBS AG ( UBS) ($37 million). Ergen-backed Sound Point Capital Management controls SP Special Opportunities, which has been purchasing the debt over the past year. The plan called the fund an affiliate of LBAC. Backed by Philip Falcone's Harbinger, LightSquared has sparred with the secured lenders and, more recently, with Ergen. The most recent battlefront is a schedule LightSquared proposed on July 19 for hearing competing Chapter 11 plans.

The debtor's exclusive right to propose a plan expired on July 15.

In the scheduling motion, LightSquared proposed it would file a disclosure statement by Sept. 3, and a hearing on all disclosure statements filed by Sept. 4 would be held on Oct. 3. A confirmation hearing would follow on Dec. 16.

Bidding procedures motions filed by Sept. 20 would be considered at the disclosure statement hearing, and an auction would be completed by Dec. 12. Chapman would consider the sale at confirmation.

The debtor asserted the timeline would "enable LightSquared to resolve its Chapter 11 cases in a fair, expeditious, and orderly manner that minimizes restructuring costs and maximizes value for the benefit of all of its stakeholders."

The ad hoc lender group, however, objected to the motion on Monday, and SP Special Opportunities joined the objection on Tuesday.

In its objection, the lender group asserted the proposal would harm the estate, allow the debtors to burn cash, put the LBAC offer at risk and make LightSquared less attractive to potential bidders.

The lenders also said the motion would lead to "costly, distracting litigation," which would be academic if they were paid in full as envisioned.

The group called Dec. 6 "the latest outside date" to win confirmation and suggested a Sept. 16 disclosure statement hearing. The lenders said their debt accumulates $29 million in interest each month, and the LP debtors burn through $12 million.

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