Based on balance sheet data as of September 30, 2009 and market data as of January 31, the troubled companies selected from the data bas by 24/7 Wall St. are:

Zale (ZLC): bankruptcy probability–22.10%

ArvinMeritor (ARM):   bankruptcy probability–13.24%

Borders Group (BGP):   bankruptcy probability–11.91%

Nextwave Wireless (WAVE):   bankruptcy probability–11.49%

Douglas A. McIntyre

The company has made two announcements:

• DOCOMO has acquired a 35% equity stake in NextWave’s subsidiary PacketVideo for $45.5 million.  This is its wireless and digital home multimedia software and service applications.  The company noted that the proceeds from the transaction will be applied to redeem a portion of NextWave’s Senior Secured Notes, due July 2010.
• The company has issued new notes with a sum of $15 million to creditors.

In the PacketVideo sale, DOCOMO was granted certain rights in the event of future transfers of PacketVideo stock or assets, preemptive rights in the event of certain issuances of PacketVideo Stock, and a call option exercisable under certain conditions to purchase the remaining shares of PacketVideo at an appraised value. DOCOMO will also have certain governance and consent rights applicable to the PacketVideo operations.

NextWave’s noteholders provided certain waivers, including a release of PacketVideo’s guaranty of NextWave indebtedness.

An SEC filing shows that on a closing date of July 2, 2009, NextWave Wireless Inc. and its subsidiary NextWave Wireless LLC entered into agreements where NextWave LLC issued additional Senior-Subordinated Secured Second Lien Notes due 2010 of $15,000,000.  These are on the same financial and other terms applicable to NextWave LLC’s existing Senior-Subordinated Secured Second Lien Notes due 2010.  Also on the same effective date NextWave issued warrants to purchase shares of its common stock to the purchaser of the Incremental Notes.

Based upon this data and data from the last few months and based on how NextWave shares have traded, we are not sure that NextWave is a company that gets to have its own say in how it operates the company.  Beyond that we will watch from the sidelines to see how this plays out.

NextWave shares are up 7% at $0.505, but they were up over 12% in earlier trading.  Its 52-week trading range is $0.07 to $4.22.

Jon C. Ogg
July 6, 2009

Par Pharmaceutical (PRX) Cuts full-year guidance. Drops to $12.82 from 52-week high of $24.50.

Nextwave Wireless (WAVE) Low on cash. Falls to $.89 from 52-week high of $7.49.

ANADIGICS  (ANAD) Warns on earnings and is downgraded. Sells off to $3.06 from 52-week high of $19.53.

Cogent (CCOI) Cuts revenue and earnings forecasts. Plunges to $7.31 from 52-week high of $30.16.

Douglas A. McIntyre

The filing was originally filed March 21, 2008 and at the time, about 92.7 million shares were outstanding before the offering. Since, about 10 million additional shares have been issued, changing the common stock to be outstanding following the offering to about 101.8 million shares and prompting the amendment.

The shares being sold by the selling stockholders were originally purchased in May 2007 for the acquisition of IPWireless. The mobile broadband and multimedia technology company will not receive proceeds from the offering. Very few of the selling stockholders will hold ownership of the company of greater than 1% following the offering.

We recently noted the company’s announcement that it was exploring the sale of its spectrum to focus on being a WiMAX and wireless technology company.  This also was recently featured in our "10 Stocks Under $10" newsletter.

Shares of NextWave are down 2% in early morning trading to $6.75. The 52-week range is $3.35 to $10.44.  While this would represent over 15-days volume if the shares all come out at once, the market seems willing to absorb at least a large portion of those shares.

You can also sign up for our open email distribution list to see about other secondary offerings, IPO’s, break-ups, spin-offs, and more.

Rachel Lopez
May 12, 2008

The company noted that its spectrum footprint covers over 251 million people (pops) in the U.S. and includes major markets such as New York, Los Angeles, Chicago, San Francisco, Boston, Philadelphia, Denver, Houston, and Detroit. It also includes licenses and lease rights for a total of 4.7 billion MHz/pops of spectrum comprised of the following:

• 154 Advanced Wireless Service licenses in the 1.7/2.1 GHz band,
• 30 Wireless Communication Service licenses in the 2.3 GHz band,
• and 39 Educational Broadband Service and Broadband Radio Service licenses and spectrum leases in the 2.5 GHz band.

The company said it has received multiple offers for its U.S. spectrum assets and this will allow it to strengthen the books, retire debt, and continue the commercialization of wireless broadband and multimedia solutions.

The products it wants to introduce are high-performance WiMAX and RFIC chipsets, advanced multi-mode, multi-band TD-CDMA, WiMAX and LTE enabled base station platforms, breakthrough MXtvTM and TDtvTM mobile television systems, mobile multimedia software solutions and platforms.

The last year has been tough for NextWave Wireless as shares closed at $4.75 yesterday, with a 52-week high of $10.44.  After a brief look, the books are already in decent shape and that would signal the bulk of the funds would go toward commercializing their products rather than trying to own airwaves. 

As its revenues are still minuscule this might actually work.  Its market cap is $440 million and 2007 revenues were a low $59.1 million.  The one analyst that follows it sees revenues to be some $123 million this year and $224 million next year, although we wouldn’t rely on that at all as it is one analyst.

But a spectrum sale also assumes their products are ready to go, are top notch, are well received, and that its already-signed partnerships come to rapid fruition.  If not, then its just another technology company fighting in a crowded space.

Jon C. Ogg
April 24, 2008