Regardless of who represents the 692 licenses, the Texas Bankruptcy Court did state on September 27, 2012 that the 692 licenses were part of the Debtor Estate and the Stay the Texas Court place into effect preventing the FCC from retaking the licenses was to protect the Debtors. And since the Reorganized Fibertower has not gained possession of the 692 licenses, they should not be the only part to benefit from the transfer of the licenses to AT&T.
Following up on Your Honor’s comments at the conclusion of the hearing held on
Wednesday, September 12th, we thought it was important to stress to the Court the Debtors’
perspective, as fiduciary to all stakeholders in these cases, regarding the “tailoring” of the
injunction the Court indicated it was inclined to enter.
Pending final determination by the Federal Communications Commissions (“FCC”) of the
Debtors’ applications with respect to their 24 GHz and 39 GHz licenses, and the conclusion of any
final review of such determination, the Debtors believe it is critical that the Court enjoin the actual
cancellation of the Debtors’ FCC licenses, pursuant to Section 105
(a) of the Bankruptcy Code. In
order to maintain the status quo ante, and to preserve the integrity and viability of the Debtors’
reorganization efforts under Chapter 11, such an injunction against actual cancellation is of
particular importance for at least two reasons. First, the actual cancellation of the licenses would
(x) constitute a breach and termination of the Plan Support Agreement between the Debtors and
the ad hoc group of holders of 2016 notes and, more importantly
(y) result in termination of the
existing agreed cash collateral order under which the Debtors have
access to cash with which to
operate their business
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