WASHINGTON-The bankruptcy sale of Geotek Communications Inc.’s 900 MHz specialized mobile
radio licenses continued to be embroiled in uncertainty last week as company officials and creditors struggled over
whether to roll the dice with a higher-albeit uncertain-bulk bid rather than take the solid $54 million offered by
individual bidders.
Geotek’s Friday bankruptcy hearing in Wilmington, Del., was postponed, as others have been
recently, and rescheduled for next Monday.
“I think Feb. 8 will be final,” said Andrew Kress, a lawyer
for Geotek.
Rothschild Inc., which is overseeing Geotek’s bankruptcy, confirmed the delay was due in part to
evaluation of bulk bids.
While the $54 million cumulatively bid by individual firms last December is money in the
bank for Geotek and major creditors, like Merrill Lynch Inc. and Hughes Electronics Co., uncertainties attached to
significantly higher prices from bulk bidders for the 190 SMR licenses appear to have complicated the decision making
in the bankruptcy case.
At least one of the bulk bidders appears to be Nextel Communications Inc., the nation’s top
SMR. Nextel is barred by a 1994 antitrust decree from owning 900 MHz SMRs in certain major markets.
Nextel,
which already controls more than half of the 800 MHz SMR market, tried but failed to convince the Justice Department
to modify the decree so it could bid on Geotek’s wireless assets.
As such, Nextel’s only option is securing decree
relief from a federal court. Nextel did not respond to requests for comment.
Chadmoore Wireless Group Inc. is
believed to be vying for all of Geotek’s licenses as well. Chadmoore and others, while not handicapped with legal
restraints, lack the financial muscle of Nextel. Thus, bulk bids by others than Nextel remain
questionable.
Successful individual bids for Geotek licenses were entered by Industrial Communications &
Electronics Inc., Southern Co., FleetTalk Partners, Mobex Communications and several others.
