Hi Doug:
Sorry for the delay. NXTL couldn't "cure the default" as such, but if a plan of reorganization were presented by the d.i.p. (Nextwave) that, by including NXTL's funds (and NXTL ownership down the line of Nextwave) or, for that matter, GBLX funds, satisfies enough of the creditors' claims, then the plan can be approved, and it is left to the parties to work out their relationships in the context of the court-approved plan of reorganization. There are two issues here that I still don't see how they can be resolved under present law: i) how NXTL could walk off with Nextwave's spectrum, either alone or as an equity owner of Nextwave, when NXTL could not, I believe, have bid in the original C-bloc (my alphabet may be wrong here)spectrum auctions and ii) how NXTL can make a hostile tender offer for a d.i.p. when there is no trading of any Nextwave stock--if, in fact, Nextwave was public when it entered Ch. 11 (which I guess it was), since the ownership rights of the previous equity holders will not be determined until the plan is approved. A rather large Catch 22.
I agree with you on the point that, at this juncture, I don't see how the FCC can alter the amount of its claim--which is a fixed amount.
Steve |
