San Diego Business Journal

NextWave’s Net Loss Grows

Monday, May 16, 2011

NextWave Wireless Inc., a San Diego-based holder of wireless spectrum licenses, reported a net loss of $61 million for its fiscal first quarter ended April 2, compared to a net loss of $2.9 million for the like quarter of 2010.

In its securities filings of May 13, the company said conditions exist that raise substantial doubt about its ability to continue as a going concern. The company has about $916 million in outstanding notes that mature at different dates this year and doesn’t have the cash to make required payments on the notes.

As of April 2, it reported total cash of $31.5 million, down from $42.5 million at the beginning of the year. Its accumulated deficit is about $1.4 billion.

NextWave has been in discussions with the holders of the notes since January but hasn’t reached any agreement and there are no active discussions.

The company engaged Moelis and Co. to seek alternative financing to repay the notes but so far none has been lined up.

Without sufficient capital to pay off the debt, NextWave said it may have to file for bankruptcy protection, which could cause significant dilution to shareholders.

Traded on the Pink Sheets exchange under WAVE.PK, shares were at 42 cents at midday May 16, near the 52-week low of 36 cents. The stock’s high over the period was $3.36.

— Mike Allen