The Federal Communications Commission released a hearing order to allow an administrative judge to examine whether paging operator MobileMedia Corp. is fit to hold its licenses.
The Order to Show Cause, Hearing Designation Order and Notice of Opportunity for Hearing for Forfeiture was released last week, six months after MobileMedia Corp. reported to the FCC it had violated commission rules in certain paging applications.
The Hearing Designation Order directs an administrative law judge to examine evidence and develop a record of facts regarding false information in certain of MobileMedia’s paging license applications. The judge has been directed to “make factual findings concerning whether MobileMedia engaged in misrepresentations, lacked candor, and willfully or repeatedly violated the commission’s rules.”
MobileMedia said it “believes its disclosure was complete and forthcoming and that it will be able to satisfy the FCC’s request for information.” The company “looks forward to presenting all evidence before the administrative law judge and resolving this issue completely.”
MobileMedia may continue to operate its licensed facilities while the hearing is pending. The FCC said it recognizes MobileMedia voluntarily disclosed the information and has since taken remedial actions.
The company will have the opportunity to provide “mitigating evidence of its ability to deal truthfully with the commission and to abide by commission rules in the future,” said the FCC.
The commission suggested the judge issue a recommended decision within six months. However, “Decisions as to the conclusions of law and appropriate sanctions or disposition are reserved to the commission,” wrote the FCC.
Last September, under the brief charge of former Chief Executive Officer Mike Lorelli, MobileMedia told the FCC it had discovered the construction status of between 400 and 500 local paging stations were falsely reported under prior management. Form 489s, which indicate a station is built, were filed late for about half of these stations. For the other half, the Form 489s were filed before the stations were completed, said the company. Rules require paging operators to build a station within one year of receiving a license.
Ridgefield Park, N.J.-based MobileMedia conducted an internal investigation of the violations and submitted results Oct. 15. The FCC said the report indicated MobileMedia filed erroneous applications between third quarter 1993 and third quarter 1996, mostly during first quarter 1996. In its report to the FCC, MobileMedia said that all management members responsible for the errors no longer are employed by the company, said the FCC.
In mid-January, the FCC terminated 402 of MobileMedia’s paging applications and licenses because the company failed to build the sites within the required time frame of one year. On Jan. 30, MobileMedia filed for Chapter 11 bankruptcy. In February, the company entered into an agreement for a $200 million debtor-in-possession loan from Chase Manhattan Bank and brought in a new CEO, Ronald Grawert, previously of GTE Mobilnet Inc.
The DiP facility is being provided to the company based on it meeting certain criteria. The company already has received $100 million and will gain access to the remaining $100 million May 1, upon the submission of a business plan April 15 and the approval of that plan by the bank’s financial adviser.
