NextWave facing second bankruptcy

Troubled US wireless broadband player NextWave Wireless is seeking to stave off a second bankruptcy with a waiver that will now expire August 1. The firm had been under obligation to repay $129m in secured debt by June 30.

The firms said it has been engaged in discussions with the holders of its secured notes relating to a maturity extension, but these discussions have not yet borne fruit. The company’s financial advisor is also seeking alternative sources of financing, but so far this has not yet been identified and cannot be assured.

It doesn’t sound good for the company spun out of Qualcomm in 1995, after which it bought up a huge chunk of US spectrum. After filing for bankruptcy it sold off the spectrum and maintained a presence with proprietary chipsets and related network and device products based on the WiMAX standard as well as wireless video technology. It has since sold off all these other assets in a bid to stay afloat but a second bankruptcy now looks likely.