Debtors' Plan Of Liquidation

IN THE UNITED STATES BANKRUPTCY COURT
FOR THE DISTRICT OF DELAWARE


In re ) Chapter 11
) GEOTEK COMMUNICATIONS, INC., et al.,* ) Case No. 98 -1375 (PJW)
)
Debtors. ) Jointly Administered


DEBTORS' FIRST AMENDED DISCLOSURE STATEMENT
PURSUANT TO SECTION 1125 OF THE BANKRUPTCY CODE


[THIS IS NOT A SOLICITATION OF ACCEPTANCE OR REJECTION OF THE DEBTORS' FIRST AMENDED CONSOLIDATED PLAN OF LIQUIDATION DATED APRIL 9, 1999. ACCEPTANCES OR REJECTIONS MAY NOT BE SOLICITED UNTIL A DISCLOSURE STATEMENT HAS BEEN APPROVED BY THE BANKRUPTCY COURT. THIS DISCLOSURE STATEMENT IS BEING SUBMITTED FOR APPROVAL BUT HAS NOT YET BEEN APPROVED BY THE BANKRUPTCY COURT.]


[INFORMATION CONTAINED HEREIN IS SUBJECT TO COMPLETION OR AMENDMENT. THIS DISCLOSURE STATEMENT SHALL NOT CONSTITUTE AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO BUY NOR WILL THERE BE ANY CONVEYANCE OF THE SECURITIES DESCRIBED HEREIN UNTIL THIS DISCLOSURE STATEMENT HAS BEEN APPROVED BY THE BANKRUPTCY COURT AND THE DEBTORS' FIRST AMENDED CONSOLIDATED PLAN OF LIQUIDATION HAS BEEN CONFIRMED.]


KAYE, SCHOLER, FIERMAN,
HAYS & HANDLER, LLP
425 Park Avenue
New York, New York 10022
(212) 836-8000


YOUNG CONAWAY STARGATT
& TAYLOR, LLP
P.O. Box 391
Rodney Square North, 11th Floor
Wilmington, Delaware 19801
(302) 571-6600


Co-Counsel to the Debtors


- ----------- * complete list of the Debtors herein is set forth on the following pages.


LIST OF ALL DEBTORS


GEOTEK COMMUNICATIONS, INC., Case No. 98-1375 (PJW)
f/k/a Geotek Industries, Inc., d/b/a
PowerSpectrum of New York, Inc.
and PowerSpectrum of Washington, D.C.,


ANSA COMMUNICATIONS, INC. Case No. 98-1376 (PJW)


CLW COMMUNICATIONS, INC., Case No. 98-1377 (PJW)


CUMULOUS HOLDING CORP. Case No. 98-1378 (PJW)


GELICO, INC. Case No. 98-1379 (PJW)


GELICO OF CHICAGO, INC. Case No. 98-1380 (PJW)


GENERAL PHOTONICS HOLDING Case No. 98-1381 (PJW)
CORPORATION, d/b/a General
Photonics Corporation


GEOPOWER, INC. Case No. 98-1382 (PJW)


GEOTEK ACQUISITION CORP. Case No. 98-1383 (PJW)


GEOTEK AMERICA, INC., d/b/a Geotek Case No. 98-1384 (PJW)
of America, Inc.


GEOTEK ASIA, INC. Case No. 98-1385 (PJW)


GEOTEK DATA, INC. Case No. 98-1386 (PJW)


GEOTEK FINANCING CORPORATION Case No. 98-1387 (PJW)


GEOTEK GMBH HOLDING CORPORATION Case No. 98-1388 (PJW)


GEOTEK HOLDINGS, INC. f/k/a Case No. 98-1389 (PJW)
Geotek USA, Inc.


GEOTEK INTERNATIONAL Case No. 98-1390 (PJW)
NETWORKS, INC.


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GEOTEK LICENSE HOLDINGS, INC. Case No. 98-1391 (PJW)


GEOTEK OF ATLANTA, INC. Case No. 98-1392 (PJW)


GEOTEK OF BOSTON, INC. Case No. 98-1393 (PJW)


GEOTEK OF CHICAGO, INC. Case No. 98-1394 (PJW)


GEOTEK OF DALLAS, INC. Case No. 98-1395 (PJW)


GEOTEK OF HOUSTON, INC. Case No. 98-1396 (PJW)


GEOTEK OF MIAMI, INC. Case No. 98-1397 (PJW)


GEOTEK OF NEW YORK, INC. Case No. 98-1398 (PJW)


GEOTEK OF ORLANDO, INC. Case No. 98-1399 (PJW)


GEOTEK OF PHILADELPHIA, INC. Case No. 98-1400 (PJW)


GEOTEK OF TAMPA, INC. Case No. 98-1401 (PJW)


GEOTEK OF WASHINGTON, D.C., INC. Case No. 98-1402 (PJW)


GEOTEK SERVICES, INC., f/k/a Case No. 98-1403 (PJW)
Geotek USA, Inc.


GEOTEK SUBSIDIARY INDUSTRIES, INC. Case No. 98-1404 (PJW)


GEOTEK TECHNOLOGIES, INC. Case No. 98-1405 (PJW)


GEOTEK USA, INC., f/k/a Case No. 98-1406 (PJW)
PowerSpectrum, Inc., d/b/a
PowerSpectrum, Incorporated,
PowerSpectrum of Houston, Inc.,
PowerSpectrum of Maryland, Inc.,
PowerSpectrum of New York, Inc.,
PowerSpectrum of N.Y., Inc.,
PowerSpectrum of NYC, Inc.,
PowerSpectrum of San Antonio, Inc., and
PowerSpectrum of Washington, D.C., Inc.


GEOTEK U.S. NETWORKS, INC. Case No. 98-1407 (PJW)


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LASER ACQUISITION CORPORATION Case No. 98-1408 (PJW)


MacDERMOTT COMMUNICATIONS, INC. Case No. 98-1409 (PJW)


METRO NET SYSTEMS, INC., Case No. 98-1410 (PJW)
f/k/a Geotek MNS, Inc.


M.I.S. HOLDINGS ACQUISITION CORP. Case No. 98-1411 (PJW)


MOBILE MESSAGE SERVICE Case No. 98-1412 (PJW)
OF TEXAS, INC.


OAKHILL COMMUNICATIONS, INC. Case No. 98-1413 (PJW)


ORAM USA, INC. Case No. 98-1414 (PJW)


PATLEX INTERNATIONAL Case No. 98-1415 (PJW)
CORPORATION


PATLEX OF DELAWARE, INC. Case No. 98-1416 (PJW)


POWERSPECTRUM MICROWAVE, INC. Case No. 98-1417 (PJW)


POWERSPECTRUM OF ATLANTA, INC. Case No. 98-1418 (PJW)


POWERSPECTRUM OF BOSTON, INC. Case No. 98-1419 (PJW)


POWERSPECTRUM OF BUFFALO, INC. Case No. 98-1420 (PJW)


POWERSPECTRUM OF CHARLOTTE, INC. Case No. 98-1421 (PJW)


POWERSPECTRUM OF CHICAGO, INC. Case No. 98-1422 (PJW)


POWERSPECTRUM OF CINCINNATI, INC. Case No. 98-1423 (PJW)


POWERSPECTRUM OF D.C., INC. Case No. 98-1424 (PJW)


POWERSPECTRUM OF DALLAS, INC. Case No. 98-1425 (PJW)


POWERSPECTRUM OF DENVER, INC. Case No. 98-1426 (PJW)


POWERSPECTRUM OF GREENSBORO, INC. Case No. 98-1427 (PJW)


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POWERSPECTRUM OF HARTFORD, INC. Case No. 98-1428 (PJW)


POWERSPECTRUM OF Case No. 98-1429 (PJW)
INDIANAPOLIS, INC.


POWERSPECTRUM OF Case No. 98-1430 (PJW)
JACKSONVILLE, INC.


POWERSPECTRUM OF KANSAS Case No. 98-1431 (PJW)
CITY, INC.


POWERSPECTRUM OF MEMPHIS, Case No. 98-1432 (PJW)
INC.


POWERSPECTRUM OF MIAMI, INC. Case No. 98-1433 (PJW)


POWERSPECTRUM OF Case No. 98-1434 (PJW)
MINNEAPOLIS, INC.


POWERSPECTRUM OF NASHVILLE, Case No. 98-1435 (PJW)
INC.


POWERSPECTRUM OF Case No. 98-1436 (PJW)
NEW ORLEANS, INC.


POWERSPECTRUM OF Case No. 98-1437 (PJW)
NEW YORK CITY, INC.


POWERSPECTRUM OF Case No. 98-1438 (PJW)
ORLANDO, INC.


POWERSPECTRUM OF Case No. 98-1439 (PJW)
PHILADELPHIA, INC.


POWERSPECTRUM OF PHOENIX, INC. Case No. 98-1440 (PJW)


POWERSPECTRUM OF ROCHESTER, Case No. 98-1441 (PJW)
INC.


POWERSPECTRUM OF SALT LAKE Case No. 98-1442 (PJW)
CITY, INC.


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POWERSPECTRUM OF SAN Case No. 98-1443 (PJW)
FRANCISCO, INC.


POWERSPECTRUM OF SEATTLE, INC. Case No. 98-1444 (PJW)


POWERSPECTRUM OF TAMPA, INC. Case No. 98-1445 (PJW)


RESHEF USA, INC. Case No. 98-1446 (PJW)


U.S.I. VENTURE CORP. Case No. 98-1447 (PJW)


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THIS DISCLOSURE STATEMENT, THE DEBTORS' FIRST AMENDED CONSOLIDATED PLAN OF LIQUIDATION DATED APRIL 9, 1999, ANNEXED HERETO AS APPENDIX "A" (THE "PLAN"), THE ACCOMPANYING BALLOTS AND THE RELATED MATERIALS DELIVERED TOGETHER HEREWITH ARE BEING FURNISHED BY THE DEBTORS TO KNOWN HOLDERS OF IMPAIRED CLAIMS AND INTERESTS PURSUANT TO SECTIONS 1125 AND 1126 OF THE BANKRUPTCY CODE, IN CONNECTION WITH THE SOLICITATION BY THE DEBTORS OF VOTES TO ACCEPT THE PLAN.


THE VOTING DEADLINE TO ACCEPT OR REJECT THE PLAN IS 5:00 P.M., EASTERN STANDARD TIME, JUNE __, 1999, UNLESS EXTENDED BY ORDER OF THE UNITED STATES BANKRUPTCY COURT FOR THE DISTRICT OF DELAWARE (THE "BANKRUPTCY COURT"). YOUR VOTE IS IMPORTANT.


THE DEBTORS BELIEVE THAT CONFIRMATION OF THE PLAN IS IN THE BEST INTERESTS OF THE DEBTORS AND ALL HOLDERS OF CLAIMS AND INTERESTS. THE DEBTORS, [THE OFFICIAL COMMITTEE OF UNSECURED CREDITORS (THE "CREDITORS' COMMITTEE")], HUGHES NETWORK SYSTEMS, A DIVISION OF HUGHES ELECTRONICS CORPORATION, S-C RIG INVESTMENTS III, L.P. AND [WILMINGTON TRUST COMPANY, AS SUCCESSOR TRUSTEE UNDER THE 15% SECURED NOTES INDENTURE] RECOMMEND THAT YOU VOTE TO ACCEPT THE PLAN. THE DEBTORS BELIEVE THAT MERRILL LYNCH GLOBAL ALLOCATION FUND, INC. AND MERRILL LYNCH EQUITY/CONVERTIBLE SERIES (GLOBAL ALLOCATION PORTFOLIO) INTEND TO VOTE IN FAVOR OF THE PLAN.


PRIOR TO SUBMITTING BALLOTS, HOLDERS OF CLAIMS AGAINST THE DEBTORS ARE ENCOURAGED TO READ AND CAREFULLY CONSIDER THIS DISCLOSURE STATEMENT IN ITS ENTIRETY, INCLUDING SPECIFICALLY THE SECTION HEREOF ENTITLED "CERTAIN FACTORS TO BE CONSIDERED."


IN ORDER FOR THE PLAN TO BE CONFIRMED BY THE BANKRUPTCY COURT, IT ORDINARILY MUST BE ACCEPTED BY EACH IMPAIRED CLASS. A CLASS OF CLAIMS OR INTERESTS IS GENERALLY CONSIDERED TO BE "IMPAIRED" UNDER SECTION 1124 OF THE BANKRUPTCY CODE IF THE PLAN ALTERS THE LEGAL, EQUITABLE OR CONTRACTUAL RIGHTS TO WHICH SUCH CLAIM OR INTEREST ENTITLES THE HOLDER THEREOF. ACCEPTANCE OF THE PLAN BY AN IMPAIRED CLASS OF CLAIMS REQUIRES THAT (i) AT LEAST HALF OF THE CLAIMANTS WHO HOLD CLAIMS IN SUCH CLASS, AND WHO ACTUALLY CAST BALLOTS, VOTE IN FAVOR OF THE PLAN, AND (ii) SUCH CLAIMANTS WHO VOTED TO ACCEPT THE PLAN HOLD AT LEAST TWO-THIRDS IN AGGREGATE DOLLAR AMOUNT OF THE CLAIMS OF THE HOLDERS IN SUCH CLASS WHO ACTUALLY CAST BALLOTS. ACCEPTANCE OF THE PLAN BY AN IMPAIRED CLASS OF


INTERESTS REQUIRES THAT AT LEAST TWO-THIRDS IN AMOUNT OF THE ALLOWED INTERESTS IN SUCH CLASS, AND WHO ACTUALLY CAST BALLOTS, VOTE TO ACCEPT THE PLAN.


IN THE EVENT ANY CLASS OF CLAIMS OR INTERESTS REJECTS, OR IS DEEMED BY LAW TO HAVE REJECTED, THE PLAN, IF ALL APPLICABLE REQUIREMENTS FOR CONFIRMATION OF THE PLAN ARE MET, AS SET FORTH IN SECTIONS 1129(a)(1) THROUGH (13) OF THE BANKRUPTCY CODE, EXCEPT THAT HOLDERS OF ANY SUCH CLAIMS OR INTERESTS HAVE REJECTED THE PLAN, THE DEBTORS SHALL REQUEST THAT THE BANKRUPTCY COURT CONFIRM THE PLAN PURSUANT TO THE "CRAM DOWN" PROVISIONS OF SECTION 1129(b) OF THE BANKRUPTCY CODE.


IF THE REQUISITE VOTE IS ACHIEVED FOR EACH CLASS OF IMPAIRED CLAIMS, THE PLAN IS SUBSEQUENTLY CONFIRMED BY THE BANKRUPTCY COURT AND THE EFFECTIVE DATE OCCURS, ALL HOLDERS OF CLAIMS AGAINST AND INTERESTS IN THE DEBTORS (INCLUDING, WITHOUT LIMITATION, THOSE HOLDERS OF CLAIMS WHO DO NOT SUBMIT BALLOTS TO ACCEPT OR REJECT THE PLAN) WILL BE BOUND BY THE TERMS OF THE PLAN AND THE TRANSACTIONS AND DISTRIBUTIONS CONTEMPLATED THEREBY.


BY ORDER DATED MAY __, 1999, THE BANKRUPTCY COURT HAS APPROVED THIS DISCLOSURE STATEMENT AS CONTAINING ADEQUATE INFORMATION TO PERMIT THE HOLDERS OF CLAIMS AGAINST THE DEBTORS TO MAKE A REASONABLY INFORMED DECISION IN EXERCISING THEIR RIGHT TO VOTE UPON THE PLAN. APPROVAL OF THIS DISCLOSURE STATEMENT BY THE BANKRUPTCY COURT DOES NOT CONSTITUTE A DETERMINATION ON THE MERITS OF THE PLAN.


THIS DISCLOSURE STATEMENT AND ITS RELATED DOCUMENTS ARE THE ONLY DOCUMENTS AUTHORIZED BY THE BANKRUPTCY COURT TO BE USED IN CONNECTION WITH THE SOLICITATION OF VOTES ACCEPTING OR REJECTING THE PLAN. NO REPRESENTATIONS ARE AUTHORIZED BY THE BANKRUPTCY COURT CONCERNING THE DEBTORS, THEIR BUSINESS OPERATIONS, THE VALUE OF THEIR ASSETS OR THE VALUES OF ANY SECURITIES TO BE ISSUED OR BENEFITS OFFERED PURSUANT TO THE PLAN, EXCEPT AS EXPLICITLY SET FORTH IN THIS DISCLOSURE STATEMENT OR ANY OTHER DOCUMENTS APPROVED FOR DISTRIBUTION BY THE BANKRUPTCY COURT.


THERE HAS BEEN NO INDEPENDENT AUDIT OF THE FINANCIAL INFORMATION CONTAINED IN THIS DISCLOSURE STATEMENT EXCEPT AS EXPRESSLY INDICATED IN THIS DISCLOSURE STATEMENT. THIS DISCLOSURE STATEMENT WAS COMPILED FROM INFORMATION OBTAINED BY THE DEBTORS


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FROM NUMEROUS SOURCES BELIEVED TO BE ACCURATE TO THE BEST OF THE DEBTORS' KNOWLEDGE, INFORMATION AND BELIEF.


SHARES OF CLASS A COMMON STOCK OF NEXTEL COMMUNICATIONS, INC. TO BE DISTRIBUTED TO HOLDERS OF ALLOWED CLAIMS PURSUANT TO THE PLAN WILL NOT HAVE BEEN REGISTERED ON THE EFFECTIVE DATE WITH THE SECURITIES AND EXCHANGE COMMISSION (THE "COMMISSION") UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR UNDER ANY STATE SECURITIES OR "BLUE SKY" LAWS. SUCH SECURITIES WILL BE ISSUED ON THE EFFECTIVE DATE IN RELIANCE UPON THE EXEMPTION FROM THE SECURITIES ACT AND APPLICABLE STATE LAWS PROVIDED IN SECTION 1145 OF THE BANKRUPTCY CODE.


NEITHER THE SECURITIES EXCHANGE COMMISSION NOR ANY SUCH AUTHORITY HAS PASSED UPON, CONFIRMED OR DETERMINED THE ACCURACY OR ADEQUACY OF THE INFORMATION CONTAINED IN THIS DISCLOSURE STATEMENT OR UPON THE DECISION TO ACCEPT OR REJECT THE PLAN. HOLDERS OF CLAIMS AND INTERESTS MUST RELY ON THEIR OWN EXAMINATION OF THE DEBTORS AND THE TERMS OF THE PLAN, INCLUDING THE MERITS AND RISKS INVOLVED.


THIS DISCLOSURE STATEMENT CONTAINS ONLY A SUMMARY OF THE PLAN. ALL HOLDERS OF CLAIMS ARE ENCOURAGED TO REVIEW THE FULL TEXT OF THE PLAN, ANNEXED HERETO AS APPENDIX "A," AND TO READ CAREFULLY THIS ENTIRE DISCLOSURE STATEMENT, INCLUDING ALL APPENDICES TO THE PLAN, BEFORE DECIDING WHETHER TO VOTE TO ACCEPT THE PLAN.


THE STATEMENTS CONTAINED IN THIS DISCLOSURE STATEMENT ARE MADE AS OF THE DATE HEREOF, AND THE DELIVERY OF THIS DISCLOSURE STATEMENT WILL NOT, UNDER ANY CIRCUMSTANCES, CREATE ANY IMPLICATION THAT THE INFORMATION CONTAINED HEREIN IS CORRECT AT ANY TIME SUBSEQUENT TO THE DATE HEREOF.


HOLDERS OF CLAIMS AND INTERESTS SHOULD NOT CONSTRUE THE CONTENTS OF THIS DISCLOSURE STATEMENT AS PROVIDING ANY LEGAL, BUSINESS, FINANCIAL OR TAX ADVICE. EACH SUCH HOLDER THEREFORE SHOULD CONSULT WITH ITS OWN LEGAL, BUSINESS, FINANCIAL AND TAX ADVISORS AS TO ANY SUCH MATTERS CONCERNING THE SOLICITATION, THE PLAN AND THE TRANSACTIONS CONTEMPLATED THEREBY.


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TABLE OF CONTENTS


Page
---- I. INTRODUCTION...............................................................1
A. Background.........................................................1
B. Voting.............................................................2
C. Summary of Distributions to Be Made Pursuant to the Plan...........6


II. BACKGROUND...............................................................12
A. Introduction......................................................12
B. Description of the Debtors and Other Subsidiary Interests.........13
C. Description of the Debtors' Business and Operations...............19
D. Description of the Debtors' Debt and Equity Structure.............21
1. Indebtedness under 15% Secured Notes Indenture.................21
2. Indebtedness to HNS............................................22
3. Unsecured .....................................................23
4. Equity Investment..............................................24
E. Events Leading to Chapter 11 Filings..............................24


III. THE CHAPTER 11 CASES....................................................28
A. Continuation of Business After the Filing Date....................28
B. Representation of the Debtors.....................................28
C. Representation of Unsecured Creditors.............................30
D. S-C Rig DIP Financing Facility and Proposed Plan of
Reorganization..................................................30
E. The Debtors' Decision to Wind-Down Their Operations...............33
F. Use of Cash Collateral............................................34
G. Marketing and Sale of the FCC Licenses............................35
1. Initial Marketing Efforts......................................35
2. The Auction Process............................................36
3. The Nextel Purchase Agreement..................................39
H. Disposition of Other Assets.......................................43
1. Sales of Miscellaneous Assets..................................43
2. Dispositions of Foreign and Non-Wholly-Owned Subsidiary
Interests....................................................44
(a) Dissolution of Geonet Communications Canada Inc. and Geotek
Communications Canada Inc................................44
(b) Liquidation of GTIL........................................45
(c) Disposition of Geotek Argentina............................46
(d) Disposition of GMSI........................................46
(e) Disposition of Cumulous Communication......................46
I. Disposition of Unexpired Leases and Executory Contracts...........46
J. Employee Retention Programs.......................................48
1. Key Employee Retention Program.................................48


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TABLE OF CONTENTS (cont'd)


2. Supplemental Employee Retention Program........................49
K. Establishment of the Bar Date and Notice Thereof..................51
L. Establishment of the Administrative Bar Date and Notice Thereof...51
M. Preferences and Fraudulent Transfers..............................52


IV. THE PLAN.................................................................55
A. Summary...........................................................55
B. Negotiations Regarding the Plan of Liquidation....................56
C. Classification and Treatment of Claims and Interests..............62
1. General........................................................62
Class 1: Administrative Expense Claims........................64
Class 2: Priority Tax Claims..................................66
Class 3: Other Priority Claims................................67
Class 4: 15% Notes Claims.....................................67
Class 5: HNS Claims...........................................74
Class 6: Other Secured Claims.................................79
Class 7: S-C Rig Senior Loan Claims...........................79
Class 8: General Unsecured Claims.............................81
Class 9: Unsecured 12% Notes Claims...........................82
Class 10: Series H Preferred Stock Interests..................84
Class 11: Series I and K Preferred Stock Interests............84
Class 12: Series L Preferred Stock Interests..................84
Class 13: Series M Preferred Stock Interests..................85
Class 14: Series N Preferred Stock Interests..................85
Class 15: Series O, P, Q, and T Preferred Stock Interests.....85
Class 16: Common Stock Interests...............................85
Class 17: Continuing Subsidiary Stock Interests...............86
Class 18: Non-Continuing Subsidiary Stock Interests............86
D. Distribution of Nextel Stock......................................86
E. Means for Implementation and Execution of Plan....................88
1. Corporate Governance...........................................88
2. Post-Confirmation Budget.......................................89
3. Payment of Employee Retention Programs.........................90
4. Professional Fees and Expenses.................................90
5. Dissolution of Non-Continuing Subsidiaries,
Continuing Subsidiaries and Reorganized Geotek........91
6. D&O Escrow Agreement...........................................91
7. Release of Liens, Contributions and Rights and
Interests with Respect to Cash Collateral......................92


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F. Substantive Consolidation.........................................94
1. Generally......................................................94
2. The Plan Contemplates the Substantive
Consolidation of the Debtors' Estates..........................95
G. Other Provisions of the Plan......................................96
1. Vesting of Assets.............................................96
2. Injunction....................................................97
3. Releases......................................................98
4. Executory Contracts...........................................99
5. Closing of Transfer Ledgers; Cancellation and Surrender of
Instruments; Termination of Certain Agreements.............100
6. Distributions to Holders of Allowed Claims...................103
7. Disputed Claims Reserve......................................105
8. Resolution of Disputed Claims................................106
9. Distributions to Holders of Subsequently Allowed Claims......106
10. Setoff Rights................................................107
11. Unclaimed Property...........................................107
12. Conditions Precedent to Confirmation.........................109
13. Conditions Precedent to the Effective Date...................109
14. Waiver of Conditions to Confirmation of the Plan and
Effective Date.............................................111
15. Retention of Jurisdiction....................................111
16. Revocation, Amendment or Modification of the Plan............113
17. Exculpation..................................................114
18. No Interest..................................................114
19. Termination of the Creditors' Committee......................114
20. Post-Effective Date Fees and Expenses........................115


V. CONFIRMATION OF THE PLAN.................................................116
A. Introduction.....................................................116
B. Feasibility......................................................116
C. Best Interests of Holders of Claims and Holders of Interests.....117
D. Alternatives to Confirmation of the Plan.........................118
1. Liquidation Under Chapter 7...................................118
2. Dismissal of the Chapter 11 Cases.............................119
E. Acceptance.......................................................120
F. Non-Acceptance and Cramdown......................................121
G. Classification of Claims and Interests...........................123


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TABLE OF CONTENTS (cont'd)


VI. CERTAIN FACTORS TO BE CONSIDERED........................................124
A. Overall Risks to the Recoveries by Holders of Claims.............124
1. Risks Associated with Phase I Closing..................124
2. Risks Associated with Phase II Closing.................124
3. Risks Associated with Value of Nextel Stock............125
4. Risks to Holders of Certain Claims.....................125


VII. APPLICABILITY OF FEDERAL AND OTHER SECURITIES LAWS TO THE NEXTEL
STOCK TO BE DISTRIBUTED UNDER THE PLAN.................................126
A. Issuance of Nextel Stock Under the Plan..........................126
B. Transfers of Nextel Stock........................................127
C. Certain Transactions by Stockholders.............................129


VIII. CERTAIN FEDERAL INCOME TAX CONSEQUENCES.............................129
A. Federal Income Tax Consequences to the Debtors...................130
1. Cancellation of Indebtedness Income...........................130
2. Gain Resulting From the Consummation of the Plan..............132
B. Federal Income Tax Consequences to Holders of Claims.............132
1. Effect of Distribution........................................132
2. Tax Consequences of Owning Property Received
With Respect to Claims........................................133
C. Importance of Obtaining Professional Assistance..................133


IX. CONCLUSION..............................................................134


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DEBTORS' FIRST AMENDED DISCLOSURE STATEMENT
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