FiberTower Network withdraws strand use agreement settlement motion

By Caroline Salls

Pittsburgh, Nov. 15 - FiberTower Network Services Corp. has withdrawn its motion for approval of a settlement with FiberLight, LLC, according to a Thursday filing with the U.S. Bankruptcy Court for the Northern District of Texas.

As a result, the company said the Nov. 19 settlement hearing has been canceled.

According to the settlement motion, FiberLight wanted FiberTower to pay more than $3.5 million under a fiber strand use agreement before agreeing to a transfer of that agreement to a purchaser of FiberTower's wireless backhaul services business in the Texas and Washington, D.C., markets.

Under the settlement, FiberLight had agreed to accept an accelerated $1.6 million lump sum payment and other settlement consideration in lieu of the $3.51 million fee due under the strand use agreement.

San Francisco-based FiberTower is a backhaul and access services provider focused primarily on the wireless carrier market. The company filed for bankruptcy on July 17. The Chapter 11 case number is 12-44027.

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