Leap Gets Permission to Sell Spectrum Licenses

The bankrupt US CDMA carrier, Leap Wireless has announced that the U.S. Bankruptcy Court for the Southern District of California in San Diego, California has approved a Bidding Procedures Motion to authorize the sale of 15 MHz of spectrum in each of the Idaho Falls and Twin Falls, Idaho markets. As part of its ongoing efforts to maximize value through the sale of excess spectrum, Leap's subsidiary which owns these licenses, Cricket Licensee (Reauction), had previously entered into a license acquisition agreement with Edge Acquisitions.

The Idaho Falls and Twin Falls licenses were acquired by the Debtor in September 1999 for approximately US$84,000 and US$49,000 respectively, and are presently carried on the Debtor's books at those same values.

As required by applicable bankruptcy laws, competing bids will be solicited on the licenses and submissions must be received no later than 4:00 p.m. (PST) on Wednesday, September 3, 2003. The current sale price is US$3,250,000 and the Bidding Procedures require that any competing bids overbid this amount in increments of US$25,000.

Competing bids must be all cash, not conditioned upon Federal Communication Commission approval of the sale, and must be on terms and conditions at least as favorable as agreed upon with Edge. The proceeds from the sale will remain subject to a security interest in favor of the holders of senior secured vendor debt issued by Cricket Communications."

Posted to the site on 13th August 2003