A Tale Of Two Bankruptcies

Law360, New York (December 15, 2011, 1:42 PM EST) -- Over the past year, a bankruptcy proceeding in Colorado — In re Tracy Broadcasting — has called into question creditors’ ability to take a security interest in the proceeds from the future sale in bankruptcy of spectrum licenses issued to borrowers by the Federal Communications Commission.

But, in a contemporaneous proceeding aligned with the majority view — In re TerreStar — the influential Bankruptcy Court for the Southern District of New York upheld the right of the TerreStar creditors’ security interest in the proceeds from the...
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