United States: A Tale Of Two Bankruptcies: Colorado Court Rejects And New York Court Upholds Validity Of Security Interests Associated With FCC Licenses
22 December 2011
Article by Jesse H. Austin, III, Paul Gibson, Eric Greenberg and Jennifer St. John Yount
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 sale of the company's FCC
licenses and sharply criticized the Tracy decision....
Specific Questions relating to this article should be addressed directly to the author.
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