WASHINGTON-The U.S. Supreme Court early last week rejected bankrupt NextWave Telecom Inc.’s appeal of a federal appeals court ruling that prompted the Federal Communications Commission to cancel its 90 personal communications services licenses.
“NextWave is disappointed that the court decided not to address the split between the 2nd and 5th Circuit U.S. Courts of Appeal regarding the FCC’s attempts to exempt itself from federal bankruptcy law and the jurisdiction of federal courts presiding over bankruptcy reorganizations,” said Michael Wack, NextWave deputy general counsel.
This is the second time the Supreme Court has rejected NextWave’s appeal.
NextWave asked the court to reconsider its decision after the U.S. Court of Appeals for the 5th Circuit in October upheld a bankruptcy court ruling reducing the amount that Metro PCS (formerly General Wireless Inc.) owes the government. A bankruptcy court ruled that Metro’s 14 PCS licenses were worth $166 million rather than the $1.06 billion bid amount. This was upheld by a federal district court so the FCC appealed to the 5th Circuit.
The 5th Circuit’s decision seemed to conflict with the decision reached by the U.S. Court of Appeals for the 2nd Circuit when it said communications law trumped bankruptcy law. The Supreme Court is the only judicial body that can resolve conflicting rulings so even though the highest court had already rejected its appeal once, NextWave appealed again.
The court gives no reasons for rejecting appeals.
The FCC plans to re-auction NextWave’s licenses beginning Dec. 12.
NextWave also has appealed the cancellation and re-auction of its licenses to the U.S. Court of Appeals for the District of Columbia Circuit. Oral argument in that case is set for March 15.
