|reply to FFH5 |
Re: Clearwire is a captive of Sprint's plans
Sprint could buy liquidated assets at auction but I disagree that the court "wipes out debt". Clear's debt holders will get as much as they can out of Clear's assets and they won't sell it to the lowest bidder.
What I don't know is whether or not the spectrum assets are sold separately or with the infrastructure and what involvement the FCC has. For instance, can AT&T or Verizon simply bid on and acquire the spectrum for their own infrastructure? Will the FCC allow either of them to get the spectrum or will they move to foster competition? Can the spectrum be sold or does this go back to the FCC and get auctioned again? (I'd think it could be sold but I'm guessing the spectrum isn't owned but rather a license was purchased. The license could have reclamation fine print if the holder of the license ceases operation.)
Liquidation is very rare for any corporation with enough clout to get MSM mentioning. Reorganization is what will happen, and Sprint will buy out the other debts at a fraction of the debts value in bankruptcy court.