NextWave today formally emerged from U.S. Chapter 11 proceedings. The company's Plan of Reorganization, which was confirmed on March 1, 2005, by the U.S. Bankruptcy Court for the Southern District of New York, became effective today upon the closing of a $3 billion sale of PCS licenses to Verizon Wireless. Pursuant to the Plan, the company has commenced distributing a portion of that transaction's proceeds and new securities to shareholders, and will continue to implement its court-approved blueprint for entering the marketplace as a provider of broadband wireless services.
"This is a very special day for me personally and for the entire NextWave family of stakeholders who have traveled a long and challenging road to achieve this result," said Allen Salmasi, NextWave's Chairman and CEO. "While making a very substantial cash distribution to shareholders, at the same time we are emerging with a strong balance sheet, an experienced and creative management team, substantial spectrum and network assets, and an innovative and well-timed plan to enter the broadband wireless market on a fully-funded basis. All of us at NextWave are looking forward to a very exciting future in the brave new world of broadband wireless communications."
NextWave believes that new and emerging 4th generation IP-based wireless technologies will provide it with cost advantages and an ability to offer consumers a unique and wider range of services that cannot be offered over existing wireless networks. The company's initial steps include a commercial launch of broadband wireless operations in Las Vegas, Nevada, and in New York City. NextWave will pursue a dual-use network strategy by making its facilities available to government entities for public safety applications at the same time the company offers commercial broadband wireless services to the consumer market.
