WASHINGTON-The U.S. Supreme Court on Friday rejected an appeal from the Federal Communications Commission on a decision from the U.S. Court of Appeals for the 5th Circuit on the bankruptcy of Metro PCS, formerly known as General Wireless Inc.
The 5th Circuit said the FCC could not appeal the Metro bankruptcy court’s ruling, which also substantially reduced the amount Metro owed the FCC. It said the FCC’s appeal was moot because Metro had “substantially” emerged from bankruptcy. The bankruptcy court ruled Metro owes $166 million for its licenses instead of $1.06 billion it originally bid. Metro has been making installment payments to the FCC based on this amount.
The Supreme Court’s action does not foreclose an FCC appeal of last month’s decision by the District of Columbia Circuit in the case involving NextWave Telecom Inc. because there are some different issues involved. For example, the 5th Circuit’s decision was based on the fact that Metro had emerged from bankruptcy while the D.C. Circuit revolved around whether communications law trumped bankruptcy law. The FCC declined to comment on the Supreme Court’s action.
“The Supreme Court declined to review a related case, which was bad news for the FCC’s appellate chances,” said Blair Levin, a Legg-Mason telecommunications analyst.
