Straight Path Communications Inc. (STRP)

[condoe3]

Their are 700 licenses in limbo and still under the control of the banruptcy court until the conclusion of a now slated 2019 trial


https://www.cravath.com/files/uploads/documents/publications/3436183_1.pdf

To obtain an injunction, the debtor in possession must show a likelihood of success on the merits, irreparable injury, balance of equities and that the injunction would serve the public interest. The merits inquiry is of the action in which the plaintiff seeks the preliminary injunction, because the preliminary injunction is in aid of the relief sought in the adversary proceeding. The bankruptcy court should not usurp or second-guess the FCC’s regulatory authority by ruling on the likelihood of success of the FCC proceeding. Therefore, the question here is whether the court is likely to grant the requested injunctive relief. The court is likely to do so, because the relief involves only a stay of termination pending the FCC’s and appellate court’s rulings, which the FCC itself would have authority to grant, and because it protects property of the estate.

The debtor in possession has a risk of irreparable injury because the cash collateral order terminates upon license termination and because the FCC might reallocate the licenses upon termination, making recovery of the licenses slow, difficult or impossible. That potential harm is greater than the harm to the FCC’s regulatory interests, and preserving property of the estate to permit reorganization is consistent with the public interest. Therefore, the court issues the preliminary injunction. Fibertower Network Servs. Corp. v. FCC (In re Fibertower Network Servs. Corp.), 482 B.R. 169 (Bankr. N.D. Tex. 2012).