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Technology Stocks : Nextwave Telecom Inc. -- Ignore unavailable to you. Want to Upgrade?

To: slacker711 who wrote (893)	8/8/2003 9:45:33 AM
From: slacker711	Respond to of 1088

NextWave must still auction mobile permits telecomtv.com 08/08/03 07:37 - by Tim Marshall While NextWave Telecom confirmed earlier this week an agreement for Cingular Wireless to acquire 34 of its US mobile phone permits, the company must still proceed with a formal auction process allowing other potential suitors a shot at the assets. In Bankruptcy Court documents filed this week, NextWave details the terms under which it will offer the 34 licenses for sale as well as the terms of a severance agreement it has with the Federal Communications Commission (FCC). NextWave still owes the FCC a considerable following the two entity’s protracted legal wrangle over NextWave’s collection of spectrum rights and its financial failings. Under the newly revealed plan, NextWave will accept bids for an auction of the 34 licenses in question on September 15 this year with competing bids to meet or exceed US$1.461 billion with an accompanying 1.5% deposit. The actual auction will begin on September 23 with bids to be made in increments of $10 million. Following several months of negotiations Cingular agreed this week to pay $1.4 billion for the 34 permits, which it plans to use to enhance its existing mobile offerings. It currently appears unlikely that another player will appear at auction, although more will become clear next week when objections to the Cingular deal and the ensuing action are to be lodged with the Bankruptcy Court. In additional clarifications yesterday, NextWave said that the sale of the permits, whether to Cingular or another buyer, would see the transfer of at least $714 million to the FCC as settlement of the ongoing dispute between the two groups. The allowance comes as part of a package of details presented by NextWave for approval by the Bankruptcy Court, which also include a $21 million break-up fee and buyer protections for the eventual auction winner. NextWave also said that the remaining $460 million from the sale would be devoted to the company’s reorganisation. In a separate posting, it added that it had secured a new $300 million debtor-in-possession loan SFG XXVI to help pay of an existing $200 million facility and the completion of its restructure.