US telecoms holding company NextWave Wireless has said that it may need to go to the US Bankruptcy Court if it does not get further extensions on the deadline when it must pay its debts.
In a statement on Monday, NextWave said that the holders of its…
US telecoms holding company NextWave Wireless has said that it may need to go to the US Bankruptcy Court if it does not get further extensions on the deadline when it must pay its debts.
In a statement on Monday, NextWave said that the holders of its first-lien debt, which amounts to approximately US$129m, had given the company a limited waiver, extending the deadline for repayment from 17 July to 1 August.
NextWave added that it was in negotiations with all the holders of its senior notes about a potential agreement where they would agree not to exercise their rights on the debt for a longer period.
The company’s second-lien debt, US$179m, will mature in November. Its third-lien debt, US$640m, will mature in December.
NextWave has admitted that its cash reserves can not cover these payments.
It said that a default would arise if the limited waiver expired in the absence of a further forbearance agreement, refinancing transaction or maturity extension.
“Inability to obtain a forbearance agreement, and ultimately a refinancing transaction or maturity extension, would significantly restrict the Company’s ability to operate and could cause it to seek relief through a filing in the United States Bankruptcy Court,” it added.
The company has been looking for additional financing to repay the first-lien and second-lien debt, but has yet to be successful.
NextWave manages spectrum licences in the US and elsewhere around the world.
It has recently been selling assets.
In October 2010, it sold its majority stake in its subsidiary Packetvideo to Japanese mobile operator NTT Docomo for US$111.6m.
It also sold a Slovakian and two Chilean subsidiaries in the last quarter of 2010, as well as relinquishing control of a Swiss subsidiary away to a bankruptcy court.
