https://urgentcomm.com/wp-content/themes/ucm_child/assets/images/logo/footer-new-logo.png
  • Home
  • News
  • Multimedia
    • Back
    • Multimedia
    • Video
    • Podcasts
    • Galleries
    • IWCE’s Video Showcase
    • IWCE 2022 Winter Showcase
    • IWCE 2023 Pre-event Guide
  • Commentary
    • Back
    • Commentary
    • Urgent Matters
    • View From The Top
    • All Things IWCE
    • Legal Matters
  • Resources
    • Back
    • Resources
    • Webinars
    • White Papers
    • Reprints & Reuse
  • IWCE
    • Back
    • IWCE
    • Conference
    • Special Events
    • Exhibitor Listings
    • Premier Partners
    • Floor Plan
    • Exhibiting Information
    • Register for IWCE
  • About Us
    • Back
    • About Us
    • Contact Us
    • Advertise
    • Terms of Service
    • Privacy Statement
    • Cookie Policy
  • Related Sites
    • Back
    • American City & County
    • IWCE
    • Light Reading
    • IOT World Today
    • Mission Critical Technologies
    • TU-Auto
  • In the field
    • Back
    • In the field
    • Broadband Push-to-X
    • Internet of Things
    • Project 25
    • Public-Safety Broadband/FirstNet
    • Virtual/Augmented Reality
    • Land Mobile Radio
    • Long Term Evolution (LTE)
    • Applications
    • Drones/Robots
    • IoT/Smart X
    • Software
    • Subscriber Devices
    • Video
  • Call Center/Command
    • Back
    • Call Center/Command
    • Artificial Intelligence
    • NG911
    • Alerting Systems
    • Analytics
    • Dispatch/Call-taking
    • Incident Command/Situational Awareness
    • Tracking, Monitoring & Control
  • Network Tech
    • Back
    • Network Tech
    • Interoperability
    • LMR 100
    • LMR 200
    • Backhaul
    • Deployables
    • Power
    • Tower & Site
    • Wireless Networks
    • Coverage/Interference
    • Security
    • System Design
    • System Installation
    • System Operation
    • Test & Measurement
  • Operations
    • Back
    • Operations
    • Critical Infrastructure
    • Enterprise
    • Federal Government/Military
    • Public Safety
    • State & Local Government
    • Training
  • Regulations
    • Back
    • Regulations
    • Narrowbanding
    • T-Band
    • Rebanding
    • TV White Spaces
    • None
    • Funding
    • Policy
    • Regional Coordination
    • Standards
  • Organizations
    • Back
    • Organizations
    • AASHTO
    • APCO
    • DHS
    • DMR Association
    • ETA
    • EWA
    • FCC
    • IWCE
    • NASEMSO
    • NATE
    • NXDN Forum
    • NENA
    • NIST/PSCR
    • NPSTC
    • NTIA/FirstNet
    • P25 TIG
    • TETRA + CCA
    • UTC
Urgent Communications
  • NEWSLETTER
  • Home
  • News
  • Multimedia
    • Back
    • Video
    • Podcasts
    • Omdia Crit Comms Circle Podcast
    • Galleries
    • IWCE’s Video Showcase
    • IWCE 2023 Pre-event Guide
    • IWCE 2022 Winter Showcase
  • Commentary
    • Back
    • All Things IWCE
    • Urgent Matters
    • View From The Top
    • Legal Matters
  • Resources
    • Back
    • Webinars
    • White Papers
    • Reprints & Reuse
    • UC eZines
    • Sponsored content
  • IWCE
    • Back
    • Conference
    • Why Attend
    • Exhibitor Listing
    • Floor Plan
    • Exhibiting Information
    • Join the Event Mailing List
  • About Us
    • Back
    • About Us
    • Contact Us
    • Advertise
    • Cookie Policy
    • Terms of Service
    • Privacy Statement
  • Related Sites
    • Back
    • American City & County
    • IWCE
    • Light Reading
    • IOT World Today
    • TU-Auto
  • newsletter
  • In the field
    • Back
    • Internet of Things
    • Broadband Push-to-X
    • Project 25
    • Public-Safety Broadband/FirstNet
    • Virtual/Augmented Reality
    • Land Mobile Radio
    • Long Term Evolution (LTE)
    • Applications
    • Drones/Robots
    • IoT/Smart X
    • Software
    • Subscriber Devices
    • Video
  • Call Center/Command
    • Back
    • Artificial Intelligence
    • NG911
    • Alerting Systems
    • Analytics
    • Dispatch/Call-taking
    • Incident Command/Situational Awareness
    • Tracking, Monitoring & Control
  • Network Tech
    • Back
    • Cybersecurity
    • Interoperability
    • LMR 100
    • LMR 200
    • Backhaul
    • Deployables
    • Power
    • Tower & Site
    • Wireless Networks
    • Coverage/Interference
    • Security
    • System Design
    • System Installation
    • System Operation
    • Test & Measurement
  • Operations
    • Back
    • Critical Infrastructure
    • Enterprise
    • Federal Government/Military
    • Public Safety
    • State & Local Government
    • Training
  • Regulations
    • Back
    • Narrowbanding
    • T-Band
    • Rebanding
    • TV White Spaces
    • None
    • Funding
    • Policy
    • Regional Coordination
    • Standards
  • Organizations
    • Back
    • AASHTO
    • APCO
    • DHS
    • DMR Association
    • ETA
    • EWA
    • FCC
    • IWCE
    • NASEMSO
    • NATE
    • NXDN Forum
    • NENA
    • NIST/PSCR
    • NPSTC
    • NTIA/FirstNet
    • P25 TIG
    • TETRA + CCA
    • UTC
acc.com

content


New pact with Nextel breathes life into Chadmoore Wireless Group

New pact with Nextel breathes life into Chadmoore Wireless Group

From August 2000 to July this year, the price of Nextel Communications stock has fallen from $55 to $15. The Reston, VA-based Nextel isn’t alone; many
  • Written by Urgent Communications Administrator
  • 16th July 2001

From August 2000 to July this year, the price of Nextel Communications stock has fallen from $55 to $15. The Reston, VA-based Nextel isn’t alone; many telecommunications companies’ shares also have fallen.

The effect on Nextel’s shareholders aside, the steep reduction in Nextel share value stands to affect a pending transaction in which Nextel would use its stock to acquire the assets of Chadmoore Wireless Group, a Las Vegas-based SMR operator with numerous 800MHz licenses. In August 2000, Nextel and Chadmoore entered an agreement that would have netted Chadmoore’s stockholders about $160 million worth of Nextel shares. On March 31, the end of the quarter, Nextel’s shares traded at $13.75. Chadmoore’s quarterly report estimated that the transaction had lost $87.5 million of its original value.

Chadmoore’s officers, directors and principal shareholders have signed agreements to support the transaction, but the report points out that the reduced value of the transaction may make shareholder approval difficult to obtain.

Responding to the possible shareholder reluctance, Chadmoore and Nextel renegotiated and agreed on June 29 to reduce the original value of the transaction to $130 million worth of Nextel shares. To help Chadmoore sustain operations, its senior lender, GATX Capital, agreed to defer payments due June 30 and Sept. 30 until either Dec. 31 or the closing of the Nextel transaction, whichever is earlier. Chadmoore will pay GATX an extra fee of $1 million for the favor.

Since last year, Chadmoore cut back on marketing and development in anticipation of the transaction. It laid off its direct sales force. The company looked into selling its accounts receivable, inventory, office furniture and equipment, and its analog SMR infrastructure equipment. If the transaction does not close this year Chadmoore expects it to, the company will have to obtain additional capital to pay debts and resume business, find another purchaser of its assets or find an acquisition partner.

To help Chadmoore continue operations with the Nextel transaction pending, Barclays Bank agreed to lend the company as much as $32.5 million, of which Chadmoore has drawn $15.3 million. Should the Nextel transaction fail to close and if Chadmoore cannot negotiate further arrangements with lenders, the company would have only enough cash to operate for another 60 days after a negative shareholder vote, the report reads.

“The company would have to immediately seek another buyer or revert to its original analog business plan or a similar one based on a digital platform,” the report says.

Another possibility would involve the sale of selected SMR channels with the permission of its creditors and lenders.

During the quarter ended March 31, Chadmoore lost $3.2 million on revenues of $1.5 million. During the same quarter last year, it lost $3.6 million on $1.5 million in revenues. Its share price, 90 cents in August 2000, had fallen to 34 cents by the end of March. It fell further to the range of 20 cents to 25 cents in the weeks preceding the renegotiation. Upon the announcement on July 11 of the new agreement with Nextel and lenders, Chadmoore’s stock bumped up as high as 47 cents.

Tags: content

Most Recent


  • New pact with Nextel breathes life into Chadmoore Wireless Group
    Newscan: Securing the Internet of Things is quite a challenge
    Also: EWA requests dismissal of 900 MHz applications; TIA names tech and policy priorities for 2014; IJIS Institute names Shumate Award winner; App makes bus waits more tolerable; a Blackberry comeback may be in the offing.
  • New pact with Nextel breathes life into Chadmoore Wireless Group
    Newscan: FCC certifies Carlson Wireless's white-space radio
    Also: Congress looks to revamp telecom law; Obama to place some restraints on surveillance; IEEE to study spectrum-occupancy sensing for white-spaces broadband; Major Swedish transport operator opts for Sepura TETRA radios; RFMD to partner on $70 million next-generation power grid project; NENA opens registratiuon for "911 Goes to Washington."
  • New pact with Nextel breathes life into Chadmoore Wireless Group
    Newscan: A look at the critical job of 911 dispatchers
    Also: NYC launches website for tracking 911 response times; Oregon implements 911 on pre-paid cell phones; LightSquared wants to keep spectrum assets; Harris receives multiple government orders; FCC extends rebanding financial reconciliation deadline; Zetron gear at core of communications system upgrade; Ritron debuts wireless access control system; EWA seeks policy review of VHF vehicular repeater system deployments.
  • New pact with Nextel breathes life into Chadmoore Wireless Group
    Newscan: Average peak data rates of 144 MB/s average realized in tests with CAT 4 LTE device
    Also: Verizon, T-Mobile to swap unused spectrum to improve coverage; Internet giants oppose surveillance--but only when the government does it; FCC Chairman says incentive auction will be delayed until middle of 2015; FCC chair announces staff appointments; Alcatel-Lucent names Tim Krause as chief marketing officer; New Jersey county deploys TriTech CAD system; Toronto airport deploys 26-position Zetron console system;

Leave a comment Cancel reply

To leave a comment login with your Urgent Comms account:

Log in with your Urgent Comms account

Or alternatively provide your name, email address below:

Your email address will not be published. Required fields are marked *

Related Content

  • RugGear: Contributing to the future of mission-critical broadband communication review and market vision
  • Photo gallery: 2014 Communications Marketing Conference (CMC) in Tucson
  • New pact with Nextel breathes life into Chadmoore Wireless Group
    Top 5 Stories - Week of Sept. 22
  • New pact with Nextel breathes life into Chadmoore Wireless Group
    RCA plans to expand this year's Technical Symposium

Commentary


Updated: How ‘sidelink’ peer-to-peer communications can enhance public-safety operations

  • 1
27th February 2023

NG911 needed to secure our communities and nation

24th February 2023

How 5G is making cities safer, smarter, and more efficient

26th January 2023
view all

Events


UC Ezines


IWCE 2019 Wrap Up

13th May 2019
view all

Twitter


UrgentComm

Gallery: IWCE 2023 kicks off in Las Vegas dlvr.it/SlZlk4

28th March 2023
UrgentComm

AT&T claims LTE coverage edge, FirstNet build more than 99% done dlvr.it/SlXZfr

27th March 2023
UrgentComm

Verizon Frontline supports U.S. Forest Service efforts against wildfires dlvr.it/SlX1g3

27th March 2023
UrgentComm

Autonomous-vehicle consequences could include more traffic dlvr.it/SlWr67

27th March 2023
UrgentComm

Tesla Model 3 hacked in less than 2 minutes at Pwn2Own contest dlvr.it/SlVJg9

26th March 2023
UrgentComm

SES: JP Hemingway on satellites’ role in the digital divide, D2D and disasters dlvr.it/SlTL4h

25th March 2023
UrgentComm

House members introduce $15 billion NG911 funding bill dlvr.it/SlS0Lr

25th March 2023
UrgentComm

ADRF: Sun Kim discusses company’s new hybrid in-building wireless solution dlvr.it/SlRtSQ

25th March 2023

Newsletter

Sign up for UrgentComm’s newsletters to receive regular news and information updates about Communications and Technology.

Expert Commentary

Learn from experts about the latest technology in automation, machine-learning, big data and cybersecurity.

Business Media

Find the latest videos and media from the market leaders.

Media Kit and Advertising

Want to reach our digital and print audiences? Learn more here.

DISCOVER MORE FROM INFORMA TECH

  • American City & County
  • IWCE
  • Light Reading
  • IOT World Today
  • Mission Critical Technologies
  • TU-Auto

WORKING WITH US

  • About Us
  • Contact Us
  • Events
  • Careers

FOLLOW Urgent Comms ON SOCIAL

  • Privacy
  • CCPA: “Do Not Sell My Data”
  • Cookie Policy
  • Terms
Copyright © 2023 Informa PLC. Informa PLC is registered in England and Wales with company number 8860726 whose registered and Head office is 5 Howick Place, London, SW1P 1WG.