RFB Cellular, which filed for chapter 11 bankruptcy protection in 2003, reported that a pair of its subsidiaries had initiated auction processes to sell the company’s remaining assets of spectrum licenses in California and Massachusetts.
The deals include Alpine-California F L.L.C. signing an agreement to sell its 10-megahertz spectrum license in the 1.9 GHz spectrum band covering Bakersfield, Calif., to Leap Wireless International Inc. for $3.9 million in cash. RFB subsidiary Alpine PCS sold a similar license covering Fresno, Calif., to Leap last July for $27.1 million.
RFB also reported that its subsidiary Alpine-Hyannis F L.L.C. signed an agreement to sell its 10-megahertz spectrum license in the 1.9 GHz spectrum band covering Hyannis, Mass., to Verizon Wireless for $640,000 in cash.
RFB noted that both sales were subject to higher and better offers and must be approved by the U.S. bankruptcy court following the auction scheduled to take place May 16.
RFB announced a deal last December to sell its Michigan wireless assets, including a CDMA network serving 25,000 subscribers, two licenses in the 850 MHz spectrum bands and seven licenses in the 1.9 GHz spectrum bands to Dobson Communications Corp. for $29.3 million.
“RFB considers these transactions to be successful outcomes for the estate, with the total proceeds reaching nearly $60 million,” said Bruce Conklin, acting chief restructuring officer for RFB.
