Co-authored by Ms Miriam R. Nemetz & Mr Andrew H. Schapiro
Bankruptcy Code — Communications Act — Cancellation of Spectrum License for Failure to Make Timely Payments.
Section 525(a) of the Bankruptcy Code, 11 U.S.C. 525(a), provides that a "governmental unit" may not revoke a license or other similar grant to a bankrupt "solely because" the bankrupt "has not paid a debt that is dischargeable" in a bankruptcy. In Federal Communications Comm'n v. NextWave Pers. Communications Inc., No. 01-653, and Arctic Slope Reg'l Corp. v. NextWave Pers. Communications Inc., No. 01-657, the Supreme Court granted certiorari to determine whether Section 525(a) of the Bankruptcy Code takes precedence over Federal Communication Commission ("FCC") rules on spectrum license auctions, which provide that spectrum licenses obtained at auction are automatically cancelled upon the winning bidder's failure to make timely payments to fulfill its bid.
