Philip Falcone might step aside at LightSquared in order to keep the company out of bankruptcy.

Falcone has struck a deal, not yet finalized, in which he would pledge not to become an officer of LightSquared and would eventually step down as a director, The Wall Street Journal reported over the weekend.

In return, LightSquared would get an extension on its debt deadlines. Lenders would "approve a one-week extension on a debt-term violations waiver that expires Monday morning" and might negotiate a further extension of up to two years, the Journal reports.

Why this matters
The Journal describes this deal as a way to push LightSquared away from a potential Chapter 11 reorganization. Falcone has said he's willing to go into bankruptcy protection in order to buy time and protect the company from creditors.

In other words, it's another move in the game between Falcone and LightSquared's creditors as the company tries to find a way to somehow start running an actual network.

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— Craig Matsumoto, Managing Editor, Light Reading