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Technology Stocks : Qualcomm Incorporated (QCOM) -- Ignore unavailable to you. Want to Upgrade?

To: Rajala who wrote (15831)	10/1/1998 7:17:00 AM
From: JGoren	Read Replies (1) \| Respond to of 152472

In Sunday's Dallas Morning News there was an article on a decision by a bankruptcy judge that one of the C-Block carriers debt to the FCC for its license would be cut in Chapter 11 to the current value of the license of about $80 million, down from the bid price of several hundred mill. There has previously been discussion on the thread about this possibility, but I believe that this may be the first decision in a bankruptcy court. It is expected that the decision will be appealed to the district court, and I would guess then to the 5th Circuit and maybe the Supreme Court. I do not recall which carrier it was but it might bode well for the C-Block carrier in which Qcom has a big interest--that also went south. Since that interest has completely been discounted as having no value to Qcom, there may be value there eventually. As I recall the article, it said that the Bankruptcy Judge rejected the FCC's argument that the entire bid amount had to be paid or the company should have applied what it paid to "buy" licenses to the extent of that price, turning back the residue. The Bankruptcy Judge in part ruled that the statute creating the C-Block was intended to encourage small players to be able to establish competition and that the FCC was reading its statute incorrectly. I tried to find the article on the Dallas News website in order to post it, but I guess I waited too late and have not been successful.