MADISON, Wisconsin, United States-Airadigm Communications, a C-block winner, filed for Chapter 11 bankruptcy protection at a U.S. bankruptcy court. Airadigm was the first C-block licensee to begin service in March 1997 and has a subscriber base of 13,000 in parts of the states of Wisconsin and Iowa.
The company ran into problems when it tried to secure financing for the second phase of its buildout.
Potential creditors told the company it was carrying too much debt, said Bob Schulze, an Airadigm spokesman. Airadigm still owes US$63 million of the licenses’ US$73 million total cost. The company is the third C-block auction winner to land in bankruptcy court.
