WASHINGTON-NextWave Telecommunications Inc. Tuesday emerged from bankruptcy following approval of its plan by Bankruptcy Judge Adlai Hardin Jr.
NextWave filed for bankruptcy June 8, 1998.
“It has been a long and challenging road to get to this moment, which makes it all the more special. We are pleased that the years of effort have resulted in a plan that pays creditors in full and provides for significant distributions to equity holders. I am grateful to the constituents of the NextWave estates and to the bankruptcy court for their patience and tremendous support in helping us achieve these results,” said Allen Salmasi, NextWave’s chairman and chief executive officer.
NextWave now plans to launch a commercial broadband wireless network in Las Vegas later this year and New York in 2007. NextWave will also make its network available to public safety.
“We strongly believe that new and emerging fourth-generation Internet Protocol-based wireless technologies will provide us with cost advantages and an ability to offer a unique and wider range of services that cannot be offered over existing wireless networks,” said Salmasi.
The NextWave bankruptcy saga began when it was unable to obtain the necessary financing to make the installment payments on the licenses it had bought at auction in 1996.
The C-block auction, as it was known, was set up for small businesses. Because it was the third auction after large established carriers had already purchased their licenses, many of the C-blockers did not succeed.
After Hardin reduced the amount NextWave owed the government, the Federal Communications Commission canceled NextWave’s licenses. Ultimately the U.S. Supreme Court overturned this result.
Following the Supreme Court decision, NextWave sold its PCS licenses to Cingular Wireless L.LC. and Verizon Wireless and returned other licenses to the FCC. The FCC recently sold these licenses for $2.25 billion.
