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Technology Stocks : Nextwave Telecom Inc.

WAVE 6.930

-3.2%

2:25 PM EST

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To: gdichaz who wrote (195)	11/24/1999 10:47:00 PM
From: JGoren	Read Replies (1) of 1088

Here is the article. Sorry about the bad link. I must have forgotten when I copied the url I had gone elsewhere. I can't find the original link, but here is the article posted elsewhere. Message 12090377 It's impossible to tell what the 2nd Circuit decided but based on the Nov. 8 article about the oral argument, it is possible that the court decided that fraudulent transfer doctrine is inapplicable to spectrum licenses or if it is applicable the date of the auction rather than the date some nine months later should have been chosen. Remember, the case was tried on the theory that by conducting further auctions so soon the FCC damaged the value of the spectrum before the whole bidding and licensing process was completed. That could mean that the bid price has to be paid; NextWave will need to raise approx. $3 billion more to pay for the licenses. The court did not have to rule totally in the FCC's favor, so the licenses may still be subject to the jurisdiction of the bankruptcy court and the ability of the court to approve a reorganization plan that could provide for longer payout. This is all speculation on my part. It does not necessarily mean that the FCC can take back the licenses or that Nextel can get its hands on the spectrum; the latter of course would create a flood of lawsuits claiming it was a backroom deal and they weren't allowed to participate. We will just have to wait until the opinion is issued, which will probably be next week. I think the order or judgment was issued because the Nextwave hearing on confirmation of the plan is scheduled for Monday. NextWave will clearly have to go back to the drawing boards on a plan of reorganization.

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