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Nucentrix

Nucentrix Broadband Networks, Inc. (“Nucentrix”) held a significant number of MMDS licenses for C and D markets in order to deliver broadband services to Texas and other parts of the Southwest. The company also had over 400 associated tower leases, most of which produced no operating revenues and hence functioned effectively as off-balance sheet debt. Prior to the filing, the company had effectively discontinued its operations, materially reducing its staff and focusing solely on preserving its exclusive rights to the FCC and leased spectrum assets.​


Results
  • In 2003 Houlihan Lokey, led by Mr. Reardon, was engaged to advise the company on all aspects of the Chapter 11 case and represent them in the sale of the business pursuant to section 363 of the United States Bankruptcy Code, which included taking over a 20-month failed sale process.​

  • Mr. Reardon ran a successful 363 sale process for the company for which no buyer could be found in the preceding two years. ​

  • Due to severe cash constraints, the auction process had to be concluded within 65 days of filing, and the winning bidder had to agree to provide a DIP loan pre-closing to enable the company to survive for the 6 months necessary to obtain required FCC approval to transfer the spectrum licenses.​

  • Based on the stalking horse bid with SBC, projected returns to creditors were less than $0.12. ​

    • Following a 40-plus-hour auction orchestrated by Mr. Reardon, Nextel outbid SBC, paying over 320% of the stalking horse bid, which together with the sale of some residual assets, resulted in creditors being paid in full and equity holders receiving over $2.50 per share (shares had been trading at less than $0.05 on the petition date)

  • Achieved a sales price 6.5x initial expectations.


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Asgaard is a division of Asgaard Capital LLC

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Tysons Corner, VA 22182

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