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To: gdichaz who wrote (103734)	9/4/2001 6:19:02 PM
From: JohnG	Respond to of 152472

NextWave Investors Protest Company's Bankruptcy Recovery Plan By Jeff St.Onge White Plains, New York, Sept. 4 (Bloomberg) -- NextWave Telecom Inc.'s Chapter 11 bankruptcy recovery plan is being opposed by investors who say it doesn't explain the company's abandonment of an earlier proposal. NextWave, operating in bankruptcy since 1998, filed a recovery plan on Aug. 6, saying it would get as much as $5.5 billion in financing. The Hawthorne, New York-based wireless communication company later announced a $300 million investment from Qualcomm Inc. and a $2.5 billion loan commitment from UBS Warburg LLC. A group of investors say creditors ``overwhelmingly'' approved a different recovery plan two years ago. Under that plan, CIBC WMC Inc., Pacific Capital Group, Liberty Next Inc. and TPG Partners III LP agreed to invest most of the $1.6 billion needed to fund NextWave's reorganization. NextWave's new plan doesn't explain company officials' decision ``to abandon their completely consensual, fully funded plan of reorganization that is poised for confirmation and instead restart the entire plan,'' the investors said in court papers. NextWave officials should be required to disclose that investors may file ``very substantial claims'' if the company pursues the second plan, the investors said. In addition to having agreed to fund the first plan, CIBC and Pacific Capital are NextWave shareholders. NextWave's original recovery plan was set for approval in late 1999 in U.S. Bankruptcy Court in White Plains, New York. However, the Federal Communications Commission sought to take back mobile-phone licenses the startup company had purchased in an auction. NextWave hopes to use the spectrum to build a wireless data-transmission network. Licenses Seized The FCC seized the disputed spectrum licenses last year and resold them in January for $16 billion. A federal appeals court in June said the move was illegal, and the FCC later gave back the licenses. A panel representing NextWave's unsecured creditors said in court papers it wouldn't oppose the new recovery plan if creditors were paid everything they're owed. The FCC filed an objection to NextWave's recovery plan last week, saying the plan should be rejected because it lacks adequate information. Winners of the January resale of NextWave's frequencies, including Verizon Wireless Inc. and companies backed by AT&T Wireless Services Inc. and Cingular Wireless, also are fighting NextWave. Judge Adlai S. Hardin Jr. is scheduled to review NextWave's plan on Sept. 12. Shares of NextWave were unchanged at $7.40 today.