Nextel Says It Would Pay at Least $2.1 Bln for Radio Spectrum
Nextel Says It Would Pay at Least $2.1 Bln for Radio Spectrum
Reston, Virginia, Aug. 18 (Bloomberg) -- Nextel Communications Inc.,
a nationwide wireless-telephone company, said it would pay at least
$2.1 billion for radio spectrum won by NextWave Telecom Inc. in a
1996 government auction, if it's able to reach agreements with
NextWave's creditors and debtors.
Last week, Nextel said it got approval from the U.S. Justice
Department and Federal Communications Commission to pursue the
radio spectrum. Today, in a filing with the U.S. Securities and
Exchange Commission, Nextel said it would pay $1.593 billion in cash
to resolve the FCC's claims on the licenses.
In addition, the FCC would retain $499 million in deposits made by or
on behalf of NextWave's debtors. Nextel also could make a payment
to NextWave's equity holders, as well as a matching payment to the
FCC, the filing said.
Hawthorne, New York-based NextWave bid about $4.8 billion for the
spectrum, though it's only paid about $500 million toward its
obligation, which a judge later reduced to just over $1 billion. The
company filed for Chapter 11 bankruptcy protection in June 1998.
Reston, Virginia-based Nextel, which is controlled in part by cellular
pioneer Craig McCaw, could use the NextWave spectrum to offer
advanced services, such as high-speed wireless Internet access.
Nextel shares, which have more than doubled in the past year, fell 2
9/16 to 57 1/16. |
