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Technology Stocks : Qualcomm Moderated Thread - please read rules before posting -- Ignore unavailable to you. Want to Upgrade?

To: pcstel who wrote (19894)	3/4/2002 7:11:13 PM
From: engineer	Read Replies (1) \| Respond to of 196658

deleted

To: pcstel who wrote (19894)	3/4/2002 7:12:32 PM
From: kech	Respond to of 196658

PCSTEL - Obviously the District Court that upheld the violation of bankruptcy law by the FCC doesn't buy your simply analogy of car lease. Let's see, who should I believe, the last court that ruled on this, or PCSTEL. Well, that wasn't so hard...

To: pcstel who wrote (19894)	3/4/2002 8:41:38 PM
From: JGoren	Respond to of 196658

in fact, the district court rejected the lease analogy. first of all, even a lease is a property interest. second, you can't terminate a lease in bankruptcy without proper procedures being followed, and the FCC violated due process by doing it ex post facto and without first getting approval of the bankruptcy court.

To: pcstel who wrote (19894)	3/4/2002 8:42:42 PM
From: JGoren	Read Replies (1) \| Respond to of 196658

if memory serves me, the Court of Appeals rejected the lease analogy. first of all, even a lease is a property interest. second, you can't terminate a lease in bankruptcy without proper procedures being followed, and the FCC violated due process by doing it ex post facto and without first getting approval of the bankruptcy court. remind me to buy some nextwave cheap after the oral argument.

To: pcstel who wrote (19894)	3/5/2002 6:44:52 AM
From: Michael Allard	Read Replies (3) \| Respond to of 196658

PCSTEL: The car lease is a good example. The only reason you do not get to keep the car in the event of a bankruptcy, is because the leasing company filed UCC forms protecting their asset in the event of a bankruptcy. The FCC did not do this properly, and that is why they lost (and will lose again) the asset. The FCC realized this when the first spectrum winner filed. They tried to get them filed prior to Nextwaves petition, but Nextwave and others asked for modifications to the payments schedule (based on the lack of access to capital caused by the FCC's delay in getting the licences transferred). Without the modification, Nextwave and others were not willing to sign off on the UCC, and the spectrum was not protected.

To: pcstel who wrote (19894)	3/5/2002 8:16:45 AM
From: saukriver	Respond to of 196658

These are licenses, they are not Nextwave's property. They are property of the US Govt. and leased to the Auction winners, as long as the covenants are upheld. If you lease a car, and file Bankruptcy. Do you get to keep the car that you leased? Yep. Indeed, you do get to keep the car if you agree to cough up as part of your bankruptcy plan sufficient cash to pay the lessor/lender its due. A bankruptcy court would require a "prompt" cure of the monetary default, which is often quite, quite different than immediate payment. Good example, PCS. You are generally elevating the form of the transaction over its substance. It is crystal clear that by licensing the FCC grants a property right (the licensee's interest in the spectrum) to the auction winner. Absent the fact the fact that Congress enacted title 11 to furnish refuge for entrepreneurs, encourage risk-taking, and avoid unnecessary job-destruction, the FCC could terminate the license for nonpayment. But that is not the NextWave situation where the licensee duly availed itself of the statute Congress enacted. If the FCC has a problem with that, lobby Congress, and quit wasting the time of the Supreme Court.