Deadline nears to file claim in Broadband Wireless case

Journal Record, The (Oklahoma City), May 20, 2002 by Ray Carter The Journal Record

Broadband Wireless International Corporation's efforts to emerge from bankruptcy are moving closer to completion, according to documents filed with the U.S. Bankruptcy Court for the Western District of Oklahoma.

According to materials filed by Broadband, those with claims against the company have only a few more weeks to document those claims. The deadline to file proofs of claims and proofs of interests at the bankruptcy clerk's office at the U.S. Bankruptcy Court for the Western District of Oklahoma is June 14.

A meeting of creditors and the initial meeting of equity security interest holders is scheduled at 9:30 a.m. May 31.

A hearing on approval of the debtor's disclosure statement is scheduled at 10 a.m. June 6. If the disclosure statement is approved, Broadband officials plan to request that the bankruptcy court set a plan confirmation hearing for early July.

Broadband has begun slowly emerging from the shadow of the stock manipulation scandal that led state and federal investigators to charge company officials numerous securities violations in August 2000.

The U.S. Securities and Exchange Commission and the Oklahoma Department of Securities filed a coordinated enforcement lawsuit in federal and state district courts alleging that two Broadband officials -- Donald L. Knight and Ivan Webb -- orchestrated a stock manipulation scheme. The alleged scheme involved "pumping" Broadband's stock price from 12 cents a share to more than $12 per share through the use of false promotional efforts. Concurrently, Knight allegedly sold or "dumped" millions of shares of restricted Broadband stock he held in the name of BroadCom to investors, reaping at least $5 million, according to the lawsuit.

The SEC obtained the permanent injunction and final judgment against Donald L. Knight in September prohibiting Knight from further securities violations and requiring him to disgorge more than $5 million to the receivership. At the time, Knight was a fugitive from justice.

Webb's ties to the company were officially severed in January 2001.

Last December, the federal Securities and Exchange Commission requested that the courts dismiss the agency's pending action against Broadband Wireless International, ended relationships with individuals charged with the stock manipulation scheme.

Before the dismissal, the SEC placed Broadband into a federal equitable receivership as a result of the alleged securities violations committed by previous directors, management, and consultants of the corporation.

By dismissing any further legal action against the company, the SEC cleared the way for Broadband to re-enter legitimate business. Broadband's board of directors approved an operational business plan in January 2001 that provides for Broadband Wireless services to be offered to business and residential customers initially in the Oklahoma City, Norman and Edmond areas.

Broadband hired the firm of Kline, Kline, Elliott, Castleberry & Bryant to represent the company through its Chapter 11 reorganization.