August 22, 2011
In the article, "Setback for Sprint in Motion Against TerreStar," Thomson Reuters reported a bankruptcy court denied Sprint's motion for partial summary judgment in a proceeding against bankrupt TerreStarr Networks, U.S. Bancorp. and others. Sprint had filed a $104 million claim against TerreStar, asserting that was TerreStar's share of costs Sprint incurred in buying bandwidth that TerreStar now uses. Sprint also claimed that the senior unsecured noteholders lien on TerreStar's license be declared invalid or subordinate to Sprint's claims. The judge stated it is the role of the bankruptcy judge and not any other body to determine the priority of Sprint's claims against those of other parties. The article noted the case is Re: Sprint Nextel Corp et al. v. U.S. Bank National Association, et al., U.S. Bankruptcy Court, Southern District of New York, No. 10-05461. It listed partner James S. Carr of Kelley Drye & Warren as counsel for U.S. Bank National Association.