Case Study: In Re TerreStar Networks

Law360, New York (September 22, 2011, 12:23 PM EDT) -- In a recent decision, Judge Sean H. Lane of the U.S. Bankruptcy Court for the Southern District of New York held that secured noteholders of TerreStar Networks Inc. and certain of its affiliates hold a valid lien on the economic value of TerreStar’s Federal Communications Commission licenses, notwithstanding well-established federal law prohibiting a secured creditor from having a lien on an FCC license itself.[1] Importantly, Judge Lane also rejected any interpretation of FCC rulings that would direct the adjudication, priority or validity of bankruptcy claims, as...
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