United States Seventh Circuit

In a suit by a bankrupt company seeking to eliminate the FCC's continuing interest in several personal communications services licenses, the bankruptcy court's determination that an earlier reorganization plan had not affected the FCC's interests in the licenses and its ratification of a second plan with the FCC as a partially secured creditor are affirmed where: 1) the "default rule" for creditors' liens did not apply since the earlier reorganization plan was silent on the issue of the licenses; 2) the "strong arm" provision of the bankruptcy code was inapplicable since federal law prevents another creditor from holding a interest in the licenses superior to that of the FCC; 3) the bankruptcy court properly treated the FCC as an undersecured creditor; and 4) the bankruptcy court did not exceed its authority in granting a limitation on a non-debtor's liability.

Appellate Information

• Argued 11/06/2007
• Decided 03/12/2008
• Published 03/12/2008

Judges

• FLAUM, Circuit Judge., Before FLAUM, KANNE, ROVNER, Circuit Judges.

Court

• United States Seventh Circuit

Counsel

• For Appellant:
  
• Ronald Barliant (argued), Kathryn A. Pamenter, Goldberg, Kohn, Bell, Black, Rosenbloom & Moritz, Chicago, IL, for Airadigm Communications, Inc.


• For Appellees:
  
• Jeffrey Clair (argued), Lloyd H. Randolph, J. Christopher Kohn, Mary A. DeFalaise, Department of Justice, Civil Division, John Rogovin, Federal Communications Commission, Washington, DC, for Appellee, Cross-Appellant.