Sprint Seeks To Void Liens On TerreStar's FCC Licenses

Law360, New York (April 21, 2011, 7:07 PM EDT) -- An attorney for Sprint Nextel Corp. asked a New York bankruptcy judge Thursday to void liens U.S. Bank NA purportedly holds on more than $1 billion worth of Federal Communication Commission licenses held by bankrupt satellite operator TerreStar Networks Inc.

If the judge agrees to nix U.S. Bank's liens, unsecured creditors could see their ultimate recovery from a sale of TerreStar's assets significantly boosted, according to court documents. TerreStar's FCC licenses, which govern certain frequencies for mobile satellite services, are worth between $1.02 billion and $1.28...
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