WASHINGTON-Two bankruptcy courts handling the aftermath of the debacle created when the Federal Communications Commission auctioned off C-block spectrum to small businesses in 1996 saw action as 2003 was winding down, and indications are that the C-block hangover will continue into 2004.
Bankruptcy Judge Adlai S. Hardin Jr. was expected to approved NextWave Telecom Inc.’s request for a 45-day extension to file its reorganization plan, said Michael Wack, NextWave senior vice president and deputy general counsel.
“Given that there are no objections and the motion has the support of our creditors’ committee, we have every reason to believe Judge Hardin will grant the extension,” said Wack.
On the other side of the country, a bankruptcy court in Tacoma, Wash., is considering an action filed Dec. 19 by Magnacom Wireless L.L.C. to recoup excess money the FCC received when it re-auctioned Magnacom’s licenses.
“Under principles of bankruptcy law and commercial law, the FCC can satisfy their debt but they must return the excess,” said Donald Verrilli, outside counsel for Magnacom. Verrilli argued successfully for NextWave before the U.S. Supreme Court.
NextWave asked the bankruptcy court to give it an additional 45 days to file its re-organization plan because the FCC has yet to approve the $1.4 billion sale of some of its licenses to Cingular Wireless L.L.C.
“Due to the relatively short time period since submission of the Cingular transaction for regulatory approval, NextWave respectfully submits that it should be granted sufficient additional time to permit this transaction to hopefully receive such approval and close, enabling the liquidity generated thereby to be one of the cornerstones of a plan. The Cingular transaction is the result of thousands of hours of discussions, negotiations and drafting among NextWave, Cingular, the FCC, the committee and the prior debtor-in-possession lender. In fact, part and parcel of the proposed transaction was the FCC term sheet, which governs the disposition and application of the proceeds of the sale vis-
