Wednesday November 24, 2:20 pm Eastern Time
U.S. Appeals court reverses ruling on NextWave
NEW YORK, Nov 24 (Reuters) - In a decision that could pave the way for wireless carrier
Nextel Communications Inc.(NasdaqNM:NXTL - news) to acquire valuable licenses, a U.S.
Appeals court on Wednesday reversed a bankruptcy court ruling that had favored Nextel
competitor NextWave Telecom Inc.
In a one-sentence ruling, the Appeals Court for the Second Circuit said it would return the case to the bankruptcy court, which
is presiding over the reorganization of NextWave, a Hawthorne, N.Y., wireless carrier that bought the licenses for $4.7 billion
in a 1997 a government auction.
The Appeals Court said it would issue a lengthier opinion on the case. But a spokesman for the U.S. Attorney's office said the
written opinion was not expected today.
NextWave filed for bankruptcy protection in 1998 after paying just $474 million of what it owed. However, the bankruptcy
court allowed it to keep the valuable licenses, which would permit it to offer wireless telephone service in 95 areas including
New York and Los Angeles, in exchange for a total of $1 billion.
The Federal Communications Commission challenged the bankruptcy court ruling after the more established Nextel, of Reston,
Va., said it would pay $2 billion for the licenses.
Nextel stock was up 7-1/8 at 104-7/8 Wednesday afternoon in Nasdaq trading. |
