Attachment New DBSD-Order DA 10

This document pretains to SES-T/C-20091211-01576 for Transfer of Control on a Satellite Earth Station filing.

IBFS_SESTC2009121101576_842927

                                   Federal Communications Commission                                 DA 10—1881



                                                Before the
                                   Federal Communications Commission
                                         Washington, D.C. 20554


In the Matter of                                         )
                                                         )
New DBSD Satellite Services G.P., Debtor—in—             )       File No. SES—T/C—20091211—01575
Possession, Transferor,                                  )       Call Sign: E070272
                                                        )        File No. SES—T/C—20091211—01576
New DBSD Satellite Services G.P., Transferee            )        Call Signs: E070290; E0O70291; EO80035;
                                                        )        E080070
Transfer of Control of Earth Station and Ancillary      )        File No. SAT—T/C—20091211—00144
Terrestrial Component Licenses and Conforming           )        Call Sign: S$2651
Modifications to Commission Records                     )

                                                    ORDER

  Adopted: September 29, 2010                                        Released: September 29, 2010

By the Chief, International Bureau:


I. INTRODUCTION

        1.      In this Order, we grant New DBSD Satellite Services G.P., Debtor—in—Possession‘s (New
DBSD DIP) request to transfer the above—referenced earth station licenses to New DBSD Satellite
Services G.P. (New DBSD). This action will allow New DBSD to emerge from bankruptcy, pursuant to a
reorganization plan that has been approved by the Bankruptcy Court.

II. BACKGROUND

         2.       New DBSD DIP is a debtor—in—possession in bankruptcy under Chapter 11 of the United
States Bankruptcy Code. On December 11, 2009, New DBSD DIP filed applications to transfer control
of earth station licenses for operations of its 2 GHz mobile satellite service system to New DBSD.‘ The
licenses include an authorization for an ancillary terrestrial component (ATC). The bankruptcy—related
reorganization plan was approved by the U.S. Bankruptcy Court for the Southern District of New York in
December 2009 and would result in a change of ownership of New DBSD‘s parent company, DBSD
North America, Inc., formally known as ICO North America, Inc." On December 16, 2009, the
applications concerning the earth stations were placed on public notice."


‘ File Nos. SES—T/C—20091211—01575 and SES—T/C—20091211—01576. New DBSD DIP also filed a request for
authority to transfer control of a "spectrum reservation" in IBFS File No. SAT—T/C—20091211—00144.
 In re DBSD N. Am., Inc., 421 B—R. 133 (Bankr. S.D.N.Y., Nov. 23, 2009)(NO. 09—13061)(REG), affd Memo. and
Order, In re DBSD N. Am., Inc., Case Nos. 09—10156, 09—10372, 09—10373 (S.D.N.Y. Mar. 24, 2010). Sprint sought
and was denied a stay of the Confirmation Order from both the District Court and the Bankruptcy Court See Memo.
and Order, In re DBSD N. Am., Inc., Case Nos. 09—10156 (S.D.N.Y. May 7, 2010); In re DBSD N. Am., Inc., Case
No. 09—13061 (Bankr. S.D.N.Y. May 18, 2010), appeal pending, In re: DBSD North America, Inc., Case No. 10—
1352 (2d Cir.).
* See Policy Branch Information, Actions Taken, Public Notice, Report No. SES—01202, rel. Dec. 16, 2009. The
filing concerning the "spectrum reservation," File No. SAT—T/C—20091211—00144, was not placed on public notice.
The spectrum reservation filing and its substantive and procedural status are discussed infra. at « 7.


                                     Federal Communications Commission                                  DA 10—1881



         3.      In response to the public notice, Sprint Nextel Corporation (Sprint Nextel) filed a petition
to deny the applications on January 14, 2010.‘ Sprint Nextel claims that New DBSD has no plans to build
out its ATC system, has not yet found a strategic partner, and has no plans for commencing operations or
generating revenue before 2014." Sprint Nextel also asks that, in the event the Commission grants the
transfer requests, the grant should include a condition concerning reimbursement of costs arising from the
relocation of incumbent Broadcast Auxiliary Service (BAS) in the 2 GHz frequency bands.° Specifically,
Sprint Nextel seeks reimbursement from ICO Global Communications (Holdings) Limited (ICO Global),
previously a controlling parent company of ICO North America, Inc., and a proposed owner of New
DBSD upon emergence from bankruptcy. Alternatively, Sprint Nextel argues that the Commission
shou17d delay grant of the transfer, pending appeal of the bankruptcy court‘s approval of the reorganization
plan.

         4.       New DBSD DIP argues, in its Opposition to Petition to Deny, that Sprint Nextel lacks
standing to oppose the application." New DBSD DIP also states that Sprint Nextel‘s allegations regarding
New DBSD‘s financial status are irrelevant and unfounded. New DBSD DIP argues that grant of the
transfer applications should not be conditioned on adjudication that ICO Global is liable to Sprint Nextel
for band clearing costs. Sprint Nextel responded to New DBSD DIP‘s Opposition to Petition to Deny, °
reiterating its points as to why the applications should be denied. ‘°

* Petition to Deny of Sprint Nextel Corporation, IBFS File Nos. SES—T/C—20091211—01575 et al. (Jan. 14, 2010)
(Sprint Nextel Petition to Deny).
° Id. at 9—13.
° Id. at 17. Reimbursement of BAS relocation costs is also the subject of a separate Commission proceeding. See
Improving Public Safety Communications in the 800 MHz Band, WT Docket No. 02—55, ET Docket No. 00—258 and
ET Docket No. 95—18 (BAS Relocation Proceeding).
‘ Sprint Nextel Petition to Deny at 17.
8 See Opposition to Petition to Deny of New DBSD Satellite Services G.P., IBFS File Nos. SES—T/C—20091211—
01575 et al. (January 25, 2010) (New DBSD Opposition}.
° Reply of Sprint Nextel Corporation to Opposition of New DBSD Satellite Services G.P. to Petition to Deny, IBFS
File Nos. SES—T/C—20091211—01575 et al., at 11 (Feb. 3, 2010) (Sprint Nextel Reply).

* In the course of this proceeding, the parties have made a number of ex parte presentations to the Commission.
Letter from Suzanne H. Malloy, New DBSD DIP, to Marlene H. Dortch, FCC (Mar. 19, 2010); Letter from Suzanne
H. Malloy, New DBSD DIP, to Mindel De La Torre, FCC (Apr. 20, 2010); Letter from Peter A. Corea, New DBSD
DIP, to Mindel De La Torre, FCC (May 27, 2010); Letter from Marc S. Martin, Counsel to Sprint Nextel, to Mindel
De La Torre, FCC (June 1, 2010); Letter from Peter A. Corea, New DBSD DIP, to Marlene H. Dortch, FCC (June
18, 2010); Letter from Peter A. Corea, New DBSD DIP, to Mindel De La Torre, FCC (July 13, 2010); Letter from
Lawrence R. Krevor, Sprint Nextel, to Mindel De La Torre, FCC (July 14, 2010); Letter from Marc S. Martin,
Counsel to Sprint Nextel, to Marlene H. Dortch, FCC (July 27, 2010); Letter from Charles W. Logan, Counsel for
Sprint Nextel, to Marlene H. Dortch, FCC (July 28, 2010); Letter from Marc S. Martin, Counsel to Sprint Nextel, to
Marlene H. Dortch, FCC (July 28, 2010), Letter from Howard J. Symons, Counsel for ICO Global, to Marlene H.
Dortch, FCC (July 30, 2010); Letter from Charles W. Logan, Counsel for Sprint Nextel, to Marlene H. Dortch, FCC
(July 30, 2010); Letter from Howard J. Symons, Counsel for ICO Global, to Marlene H. Dortch, FCC (Aug. 2,
2010); Letter from Peter A. Corea, New DBSD DIP, to Marlene H. Dortch, FCC (Aug. 4, 2010); Letter from
Howard J. Symons, Counsel for ICO Global, to Marlene H. Dortch, FCC (Aug. 4, 2010); Letter from Howard J.
Symons, Counsel for ICO Global, to Marlene H. Dortch, FCC (Aug. 4, 2010) (providing a correction to their Aug. 2,
2010 letter); Letter from Cheryl A. Tritt, Counsel to New DBSD DIP, to Marlene H. Dortch, FCC (Aug. 5, 2010);
Letter from Marc S. Martin, Counsel to Sprint Nextel, to Marlene H. Dortch, FCC (Aug. 6, 2010); Letter from Marc
S. Martin, Counsel to Sprint Nextel, to Marlene H. Dortch, FCC (Aug. 9, 2010) (transmitting appeals court oral
argument transcript); Letter from Marc S. Martin, Counsel to Sprint Nextel, to Marlene H. Dortch, FCC (Aug. 10,
2010); Letter from Cheryl A. Tritt, Counsel to New DBSD DIP, to Marlene H. Dortch, Secretary, FCC (Aug. 12,
2010); Letter from Marc S. Martin, Counsel to Sprint Nextel, to Marlene H. Dortch, FCC (Aug. 17, 2010); Letter
from Howard J. Symons, Counsel for ICO Global, to Marlene H. Dortch, FCC (Aug. 23, 2010); Letter from Howard
                                                                                                       (continued....)
                                                          2


                                   Federal Communications Commission                                 DA 10—1881



III. DISCUSSION

         A. Preliminary Matters

         5.       Sprint Nextel as a party in interest. In its Opposition, New DBSD DIP argues that Sprint
Nextel lacks standing to oppose the transfer of control applications because they have not demonstrated a
direct injury or a causal link between any claimed injury and a grant of the transfer of control
applications.‘‘ New DBSD DIP also claims that Sprint Nextel‘s arguments about the separate dispute
over relocation reimbursements cannot confer Sprint Nextel with standing in this proceeding because it is



(...continued from previous page)
J. Symons, Counsel for ICO Global, to Marlene H. Dortch, FCC (Aug. 26, 2010); Letter from Marc S. Martin,
Counsel to Sprint Nextel, to Marlene H. Dortch, FCC (Aug. 26, 2010); Letter from Howard J. Symons, Counsel for
ICO Global, to Marlene H. Dortch, FCC (Aug. 27, 2010); Letter from Cheryl Tritt, Counsel for New DBSD, to
Marlene H. Dortch, FCC (Aug. 27, 2010); Letter from Peter A. Corea, Counsel for New DBSD, to Marlene H.
Dortch, FCC (Aug. 27, 2010); Letter from Marc S. Martin, Counsel to Sprint, to Marlene H. Dortch, FCC (Aug. 30,
2010)(regarding teleconference with advisor to Cmm‘r Clyburn); Letter from Marc S. Martin, Counsel to Sprint, to
Marlene H. Dortch, FCC (Aug. 30, 2010)(regarding teleconference with advisor to Cmm‘r McDowell); Letter from
Marc S. Martin, Counsel to Sprint Nextel, to Marlene H. Dortch, FCC (Sept. 1, 2010); Letter from Andrew M.
LeBlanc, Counsel to Highland Capital, to Marlene H. Dortch, FCC (Sept. 1, 2010); Letter from Howard J. Symons,
Counsel for ICO Global, to Marlene H. Dortch, FCC (Sept. 1, 2010); Letter from Marc S. Martin, Counsel to Sprint
Nextel, to Marlene H. Dortch, FCC (Sept. 2, 2010)(regarding meeting with Austin Schlick); Letter from Marc S.
Martin, Counsel to Sprint Nextel, to Marlene H. Dortch, FCC (Sept. 2, 2010)(regarding meeting with John Giusti);
Letter from Marc S. Martin, Counsel to Sprint Nextel, to Marlene H. Dortch, FCC (Sept. 2, 2010)(regarding separate
teleconferences with Commissioners McDowell and Copps); Letter from Marc S. Martin, Counsel to Sprint Nextel,
to Marlene H. Dortch , FCC (Sept. 3, 2010)(submitting letters exchanged between John Culver and Yosef Riemer);
Letter from Marc S. Martin, Counsel to Sprint Nextel, to Marlene H. Dortch, FCC (Sept. 3, 2010)(responding to
ICO Global‘s Sept. 1 ex parte communication); Letter from Howard J. Symons, Counsel for ICO Global, to Marlene
H. Dortch, FCC (Sept. 3, 2010); Letter from Yosef Riemer, Counsel for New DBSD, to Marlene H. Dortch, FCC
(Sept. 3, 2010); Letter from Howard J. Symons, Counsel for ICO Global, to Marlene H. Dortch, FCC (Sept. 9,
2010); Letter from Marc S. Martin, Counsel to Sprint Nextel, to Marlene H. Dortch, FCC (Sept. 10, 2010); Letter
from Howard J. Symons, Counsel for ICO Global, to Marlene H. Dortch, FCC (Sept. 10, 2010); Letter from Marc S.
Martin, Counsel to Sprint Nextel, to Marlene H. Dortch, FCC (Sept. 13, 2010)(regarding meeting with Legal
Advisor to Commissioner Baker); Letter from Mare S. Martin, Counsel to Sprint Nextel, to Marlene H. Dortch, FCC
(Sept. 13, 2010)(regarding meeting with Legal Advisor to Commissioner Clyburn); Letter from Marc S. Martin,
Counsel to Sprint Nextel, to Marlene H. Dortch, FCC (Sept. 14, 2010); Letter from Howard J. Symons, Counsel for
ICO Global, to Marlene H. Dortch, FCC (Sept. 14, 2010); Letter from Marc S. Martin, Counsel to Sprint Nextel, to
Marlene H. Dortch, FCC (Sept. 15, 2010); Letter from Marc S. Martin, Counsel to Sprint Nextel, to Marlene H.
Dortch, FCC (Sept. 16, 2010); Letter from Phuong N. Pham, Counsel for New DBSD, to Marlene H. Dortch, FCC
(Sept. 16, 2010); Letter from Marc S. Martin, Counsel to Sprint Nextel, to Marlene H. Dortch, FCC (Sept. 17,
2010)(responding to ICO Global‘s Sept. 14 ex parte communication); Letter from Joseph D. Weinstein to Howard J.
Symons, Counsel for ICO Global (Sept. 17, 2010); Letter from Howard J. Symons, Counsel for ICO Global, to
Marlene H. Dortch, FCC (Sept. 17, 2010)(responding to Sprint‘s Sept. 10 ex parte communication); Letter from
Marc S. Martin, Counsel to Sprint Nextel, to Marlene H. Dortch , FCC (Sept. 17, 2010)(submitting extension of
debtor—in—possession financing for New DBSD); Letter from Marc S. Martin, Counsel to Sprint Nextel, to Marlene
H. Dortch, FCC (Sept. 21, 2010)(responding to ICO Global‘s Sept. 17 ex parte communication); Letter from Marc
S. Martin, Counsel to Sprint Nextel, to Marlene H. Dortch, FCC (Sept. 21, 2010)(submitting a Motion filed by
DBSD in the U.S. Bankr. Ct., SDNY); Letter from Mare S. Martin, Counsel to Sprint Nextel, to Marlene H. Dortch,
FCC (Sept. 22, 2010); Letter from Howard J. Symons, Counsel for ICO Global, to Marlene H. Dortch, FCC (Sept.
22, 2010); Letter from Marc S. Martin, Counsel to Sprint Nextel, to Marlene H. Dortch, FCC (Sept. 24, 2010);
Letter from Marc S. Martin, Counsel to Sprint Nextel, to Marlene H. Dortch, FCC (September27, 2010); Letter
from Marc S. Martin, Counsel to Sprint Nextel, to Marlene H. Dortch, FCC (September 27, 2010)(transmitting
pleading Sprint Nextel submitted to the Bankruptcy Court, Southern District of New York).
‘‘ New DBSD Opposition at 3—4.


                                     Federal Communications Commission                                    DA 10—1881



the subject of another proceeding."" In response, Sprint Nextel claims that it does have standing because
the reimbursement obligations on MSS entrants are inextricably tied to the licenses in question.

         6.      We take a "rather generous attitude" toward standing in opposition to transfer and
assignment applications in order to enable interested parties to bring to the Commission‘s attention
matters bearing upon the public interest of which the Commission might not be otherwise aware."" To
that end, whether we conclude that Sprint Nextel has "standing," or whether we treat the Petition to Deny
as an informal objection,‘" we believe that the issues raised in Sprint Nextel‘s filings are of sufficient
public ilr?portance that they should be considered on their merits, rather than summarily rejected without
review.

          7.      Ripeness ofthe Spectrum Reservation Filing. In an ex parte filing, Sprint Nextel notes
 that only two of New DBSD DIP‘s three applications appear ripe for action, because only two have been
 placed on public notice.""‘ The third application involves the letter of intent filing, and the Commission‘s
 decision in response to that filing to reserve spectrum for eventual use by the ICO/New DBSD system."
 We disagree with Sprint Nextel‘s argument that the third application must be placed on public notice
 prior to action. The instruments involved in that application are not construction permits or licenses
 subject to the notice and prior transfer approval requirements of Section 309(b) and 310(d) of the
 Communications Act.‘" The public notices regarding the earth stations have provided an adequate
 opportunity for raising any public interest concerns with respect to the transaction. Concurrently with
 action on New DBSD DIP‘s earth station license transfers, we will take the administrative action of



° Id. at 4.
} Sprint Nextel Reply at 17—19.
4 See Broadcast Enterprises, Inc. v. FCC, 390 F.24 483, 485 (D.C. Cir. 1968).
" See, e. g., In the Matter of DirecTV Enterprises, LLC, Order, DA 10—113, 25 FCC Red 440, 442, [ 5 (Sat. Div.,
Int‘l. Bur. 2010) (noting that there is no standing requirement for informal objections, and that the Commission has
discretion to consider such objections).

 © To support its claim that Sprint Nextel lacks standing, New DBSD DIP cites In re Applications to Assign Wireless
Licenses from WorldCom, Inc.(Debtor—in—Possession) to Nextel Spectrum Acquisition Corp., Memorandum Opinion
and Order, 19 ECC Red 6232, 2004 WL 718999 (Apr. 2, 2004), where the Commission rejected a petition to deny
on both standing and mootness grounds. There, however, the objection was based on a refusal to extend an
unrelated facilities agreement, and claims that the applicant had violated unrelated procedural rules («« 9—10), and
the Commission noted that it had already resolved the issues in another proceeding (([ 21). Here, in contrast, Sprint
Nextel makes a claim of direct injury in fact, the matters at issue are pending in unresolved administrative and
judicial proceedings, and Sprint Nextel seeks to protect its position in those proceedings through its Petition to
Deny.

 Letter from Marc S. Martin, Counsel to Sprint Nextel, to Marlene H. Dortch, FCC (August 9, 2010), at 2.
* The letter of intent/spectrumreservation mechanism was developed to facilitate the participation of non—U.S.
licensed satellite systems in the FCC licensing process, even though such systems were not seeking a U.S. space
station license. As such, favorable action on a letter of intent filing is in the nature of a policy statement or
declaratory ruling with respect to the availability of spectrum for future licensing of U.S. earth stations that would
operate with the non—U.S. licensed space station. See Amendment of the Commission‘s Regulatory Policies to
Allow Non—U.S. Licensed Satellites Providing Domestic and International Service in the United States, Report and
Order, IB Docket No. 96—111, 12 FCC Red 24094, 24173 (para. 184). Once an earth station license is issued,
however, our practice is to maintain the Letter of Intent file for informational purposes, as it contains satellite
technical information that aids in the evaluation of earth station license applications.

? 47 U.S.C. §§ 309(b), 310(d).


                                     Federal Communications Commission                                  DA 10—1881



 modifying the company name in which the files for the letter of intent/spectrum reservation documents
 are listed.

          B. Grant of New DBSD‘s applications serves the public interest

         8.      In its Petition to Deny, Sprint Nextel argues that a grant of the transfer of control
 applications would not serve the public interest and would offer no public benefit. Sprint Nextel
 contends that during the bankruptcy proceeding, New DBSD DIP confirmed that it had no plans to
 provide commercial service until 2014 at the earliest and does not have the financial ability to complete
 construction of the ATC component of their network."" Sprint Nextel argues that the lack of financial
 resources would result in effectively mothballing the MSS/ATC system since New DBSD would not
 have the financial capability to complete it."‘ Sprint Nextel also cites to New DBSD‘s lack of success in
 finding a strategic partner as another reason that granting the transfer of control applications would not
 be in the public interest."

         9.       In response, New DBSD DIP argues that a grant of its applications will serve the public
 interest because New DBSD‘s satellite system had been successfully launched and tested before gaining
 full access to the MSS spectrum.*" New DBSD DIP further states that grant of the applications will
 serve the public interest by enabling them to emerge from bankruptcy protection and be better able to
 attract strategic partners and their current financial resources are not indicative of whether it will be able
 to fully implement its system."*

         10.     We believe that granting New DBSD DIP‘s transfer of control applications will serve the
 public interest. Although we must make our own public interest determination under the mandate of the
 Communications Act, the Commission seeks, where possible within the framework of the requirements
 of the Communications Act, to accommodate the policies of the Bankruptcy Code and the findings of
 bankruptcy courts."" The Commission has held in the past that allowing a company to consummate its
 court—approved bankruptcy reorganization plan will "serve the public interest by furthering the equitable
 purposes of the Federal Bankruptcy Act.""° Further, the Commission recognizes that as a general matter
 approving transfer of control or assignment applications for purposes of post—bankruptcy restructuring
 will strengthen the commercial viability of the applicant in the provision of service.""‘

         11.     With respect to Sprint Nextel‘s specific assertions that New DBSD DIP is not financially
 qualified to hold a Commission license, the Commission‘s rules do not require any specific showing of
 financial qualifications on an application to transfer control."" Further, Sprint Nextel has not presented

*° Sprint Nextel Petition to Deny, at 10—11.
*‘ Id. at 15—16.
* Id. at 8—9.
* New DBSD Opposition at 5.
* Id. at 6.
* See LaRose v. FCC, 494 F.2d 1145, 1146 n.2 (D.C. Cir. 1974).

* Space Station System Licensee, Inc., Assignor, and Iridium Constellation LLC, Assignee, Memorandum Opinion
and Order, 17 FCC Red 2271, 2289 (2002).
*‘ International Authorizations, Public Notice, 19 FCC Red 4079 (2004) (granting the assignment or transfer of
control of Commission licenses relating to the operation of the Globalstar MSS system from Globalstar LP, Debtor—
in—Possession to L/Q Licensee, Inc.).
* Section 25.119 of the Commission‘s rules, 47 C.F.R. § 25.119, spells out the requirements for satellite license
transfers of control, and makes no mention of a required financial showing. Section 25.165 of the Commission‘s
                                                                                                       (continued....)
                                                          5


                                     Federal Communications Commission                                DA 10—1881



 any evidence or arguments regarding the future financial stability of New DBSD DIP that were not also
 presented to the bankruptcy court in connection with the confirmation of New DBSD DIP‘s
 reorganization plan. The bankruptcy court was required under the Bankruptcy Code to make a finding
 that the proposed plan was feasible and that the proposed plan is not likely to be followed by liquidation
 or need for further financial reorganization of the debtor or successor of the debtor under the plan."" The
 bankruptcy court reviewed the contested evidence on feasibility that was presented by Sprint Nextel and
 other parties and made specific findings that the proposed plan met these requirements, noting that New
 DBSD DIP had firm financing commitments for two years of operations and that upon exit from
 bankruptcy, New DBSD DIP would be in a better position to attract new investments and strategic
 partners."" Consistent with our general respect for bankruptcy proceedings and because the bankruptcy
 court‘s findings are consistent with the record here, we likewise reject Sprint Nextel‘s arguments
 concerning New DBSD DIP‘s financial capability.

       C. Sprint Nextel‘s request that the transfer order be conditioned on payment of relocation
reimbursements to Sprint Nextel by ICO Global

         12.     Sprint Nextel asks that, should the Commission grant the pending transfer of control
applications, the grant should be conditioned on the payment of relocation reimbursement costs incurred
by Sprint Nextel."‘ Sprint Nextel recognizes that the licensee, New DBSD DIP and various affiliates are
in bankruptcy, and that the automatic stay imposed by the Bankruptcy Code prohibits Sprint Nextel from
seeking reimbursement of costs directly from New DBSD DIP outside of the bankruptcy claims process.""
Sprint Nextel asserts, however, that ICO Global is also liable for payment of the relocation
reimbursements to Sprint Nextel." ICO Global is not a party to the pending New DBSD DIP bankruptcy
case and Sprint Nextel asserts that ICO Global, therefore, is not protected by the Bankruptcy Code‘s
automatic stay."* Accordingly, Sprint Nextel requests that we impose, as a condition for the out of
bankruptcy transfer, a requirement that ICO Global pay the relevant relocation reimbursements to Sprint
Nextel."" ICO Global‘s potential liability to Sprint Nextel is addressed in a separate Order in the BAS
Relocation Proceeding and we will not revisit the issue here.""




(...continued from previous page)
rules, 47 C.F.R. §25.165(a), which imposes a bond requirement on the grant of new satellite licenses, makes no
mention of transfers of control.

* 11 U.S.C. § 1129(a)(11).
5 In re DBSD North America, et al., Case No. 09—13061 (REG) (Jointly Administered) (Bankr. S.D.N.Y., October
26, 2009) at 12—21.
*‘ See Sprint Nextel Petition to Deny at 17—21.
* See Sprint Nextel Petition to Deny at 18 n. 38.
* Id. at 19.
* 1d.
* Td
* Improving Public Safety Communications in the 800 MHz Band, WT Docket No. 02—55, ET Docket No. 00—258
and ET Docket No. 95—18, Fifth Report and Order, Eleventh Report and Order, Sixth Report and Order, and
Declaratory Ruling, FCC 10—179 (released September 29, 2010).


                                   Federal Communications Commission                                DA 10—1881




         D. Sprint Nextel‘s request that the Commuission delay approval of the transfer applications until
resolution of its pending appeal of the confirmation order

         13.     Sprint Nextel requests that the Commission defer ruling on the applications until the
Sprint Nextel‘s pending judicial appeal of the confirmation order has been resolved.""‘ Responding to
Sprint Nextel, New DBSD DIP has made several ex parte requests urging the Commission to decide the
pending applications as quickly as possible."" Sprint Nextel also requests in the alternative that the
Commission defer the effective date of the order granting the transfer applications to give Sprint Nextel
an opportunity to seek a stay of the bankruptcy confirmation order from the United States Court of
Appeals for the Second Circuit, where Sprint Nextel‘s appeal of the confirmation order is pending."" The
grant of the pending applications is a condition precedent to the effective date of confirmation under the
reorganization plan."" Sprint Nextel argues that granting the transfer applications will trigger the effective
date in the reorganization plan, which raises the potential for prudential mootness preventing the Court of
Appeals from deciding the pending bankruptcy appeal."" The appeal has now been fully briefed and
argued and is awaiting decision by the Court of Appeals."

          14.      We do not believe that the public interest will be served by delaying the pending transfer
applications until the Second Circuit rules on the merits. However, we also do not intend our grant of the
applications to interfere with the ability of the Court of Appeals to decide the pending case or to consider
a timely stay request filed by Sprint Nextel. New DBSD DIP has taken steps to assure the Commission
that it will not interfere with the filing of a timely stay request by Sprint Nextel. New DBSD DIP has
committed to the Commission that it will not consummate the plan of reorganization earlier than four
business days after release of the Order approving the transfer applications." Building on these
assurances from New DBSD DIP, and to ensure Sprint Nextel an adequate opportunity to present its
request for a stay to the Second Circuit and receive a ruling on the stay request prior to the closing of the
exit financing and the consummation of the Plan, we will defer the effective date of this Order for seven
calendar days after its release. This will ensure Sprint Nextel an opportunity to be heard by the Court of
Appeals while imposing only a minimal additional burden on Sprint Nextel, if any: New DBSD DIP‘s
commitment not to close for four business days after the release of this Order would amount to a waiting
period of between four and seven calendar days, depending on intervening weekends and holidays.




* See Sprint Nextel Petition to Deny at 21; Letter from Marc S. Martin, Counsel to Sprint Nextel, to Marlene H.
Dortch, FCC (Aug. 10, 2010) at 6.
* See Letter from Cheryl A. Tritt, Counsel to New DBSD DIP, to Marlene H. Dortch, FCC (Aug. 5, 2010) at 2.
* See Letter from Marc S. Martin, Counsel to Sprint Nextel, to Marlene H. Dortch, FCC (Aug. 17, 2010), at 2.
* In re: DBSD North America, Inc., Case No. 09—13061(REG) (Jointly Administered) (Bankr. S.D.N.Y., Nov. 23,
2009) (Findings of Fact and Conclusions of Law and Order Confirming Debtors‘ Second Amended Joint Plan of
Reorganization Pursuant to Chapter 11 of the United States Bankruptcy Code), Attachment B —— Plan of
Reorganization, Article X.A.5 at p.46 ("Reorganization Plan").
* See Letter from Marc S. Martin, Counsel to Sprint Nextel, to Marlene H. Dortch, FCC (Aug. 17, 2010), at 2.
* See Letter from Marc S. Martin, Counsel to Sprint Nextel, to Marlene H. Dortch, FCC (Aug. 9,
2010)(transmitting appeals court oral argument transcript), at Attachment A.
* Letter from Peter A. Corea, counsel for New DBSD, to Marlene H. Dortch, FCC (Aug. 27, 2010) at 2—3.


                                Federal Communications Commission                            DA 10—1881




IV. ORDERING CLAUSES

        15.    Accordingly, the applications of New DBSD Satellite Services G.P., Debtor—in—
Possession, IBFS File Nos. SES—T/C—20091211—01575 and SES—T/C—20091211—01576, ARE GRANTED.

          16.     IT IS FURTHER ORDERED, that application File No. SAT—T/C—2009121—00144 IS
GRANTED to the extent of modifying the name in which the records associated with Call Sign $2615 are
listed in the International Bureau Filing System.

         17.     This Order is issued pursuant to Section 0.261 of the Commission‘s rules on delegated
authority, 47 C.F.R. § 0.261, and is effective seven (7) calendar days following release.

                                                FEDERAL COMMUNICATIONS COMMISSION




                                       /;ndel De La Torre £,, xq
                                                Chief
                                                International Bureau



Document Created: 2019-04-08 12:41:42
Document Modified: 2019-04-08 12:41:42

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