Qualcomm told SEC in filing late Fri. it no longer was obligated ...
Qualcomm told SEC in filing late Fri. it no longer was obligated to make $300 million preferred stock investment in NextWave. In Aug., Qualcomm outlined investment in NextWave, which last year selected CDMA2000 to build out its national wireless…
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network. Planned investment was part of equity financing covered under NextWave’s 2nd plan of reorganization in U.S. Bankruptcy Court, White Plains, N.Y. Commitment by Qualcomm to buy 2 million shares of preferred stock, it said in SEC filing, was contingent on: (1) Bankruptcy court approval. (2) Successful consummation of NextWave’s Aug. 2001 reorganization plan. (3) “Satisfactory resolution” of all disputes involving NextWave’s wireless PCS licenses. Qualcomm said its obligation hinged on bankruptcy court approval of company’s investment by Oct. 31. Approval also was needed for Aug. 15 technology agreement between NextWave and Qualcomm. “The approvals required by October 31, 2001, have not been obtained, and the company is entitled to terminate its investment agreement with NextWave,” Qualcomm told SEC. CDMA developer also said if NextWave abandoned reorganization plan filed in Aug. and moved ahead with new plan, Qualcomm also wasn’t obligated to terms of its investment. “As a result of the uncertainty surrounding NextWave’s financing plans, the terms of a settlement with the FCC and other factors, there is significant uncertainty as to whether the company will make its planned investment in a reorganized NextWave,” Qualcomm said.