Sprint Fails To Nix Liens On TerreStar's FCC Licenses

Law360, New York (August 22, 2011, 3:37 PM EDT) -- A New York bankruptcy judge refused Sprint Nextel Corp.'s request Friday to void liens that U.S. Bank NA and others placed on more than $1 billion worth of Federal Communications Commission licenses held by bankrupt satellite operator TerreStar Networks Inc.

While only the FCC can determine who may hold spectrum licenses, making liens on the licenses themselves invalid, the commission and case law allows for liens on the economic value associated with the licenses, according to U.S. Bankruptcy Judge Sean H. Lane. TerreStar's FCC licenses, which...
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