January 31, 2007

DA07-405

Frederick M. Joyce

Christine McLaughlin

Venable LLP

575 7^th^ Street, NW

Washington, DC 20004-1601

> RE: Golden Arrow Paging, Inc.
>
> Final Bid Withdrawal Payment for Auction No. 40
>
> DA 04-3535 (released November 25, 2004)

Dear Counsel:

This responds to your request on behalf of Golden Arrow Paging, Inc.
("Debtor") dated December 23, 2004 ("Request")[^1] seeking
"reconsideration of the Division's assessment . . . of a bid withdrawal
\[payment\]" or, in the alternative, requesting that the Commission
waive or substantially reduce the payment, or allow payment according to
a payment plan. For the reasons discussed below, we are returning your
Request without action. Your request for a waiver or reduction of the
payments does not include adequate information conforming to the
Commission's rules for debt compromise.[^2] Moreover, your request for
an installment payment plan is incomplete. Any further consideration of
one or more requests for debt compromise, must conform to our rule at 47
C.F.R. § 1.1915, and any request to pay the debts in installments must
comply with our rule at 47 C.F.R. § 1.1914. Future correspondence
seeking compromise or installment payments should be directed to the
Commission's Office of the Managing Director.

The Division Letter was a demand for payment on all debts within 30
days, but if the debts remained unpaid after that date administrative
charges, interest, and penalties would accrue. [^3] We do not construe
your Request, in response to that demand, as a proper petition to
reconsider the debt. However, because you framed your Request in the
alternative, we will determine what other procedure, if any, may be
considered.

Your Request also seeks, in the alternative, relief in the nature of
waiver or reduction in the debt. Consequently, we construe your Request
as seeking debt compromise. Because the debt is less than \$100,000, it
is within the Commission's compromise authority,[^4] which may be
initiated by request from the Debtor.[^5] Such a request and our review
must comply with Federal Claims Collection standards,[^6] which limit
the scope of compromise to four situations: (a) inability to pay; (b)
inability of the Government to collect within a reasonable time using
enforced collection proceedings; (c) diminishing returns; and (d)
"significant doubt" concerning the Government's ability to prove its
case in court.[^7]

A request to compromise one or more claims must be "submitted in writing
with full justification of the offer and addressing the bases for
compromise at 31 CFR 902.2."[^8] A debtor must comply with the
regulatory requirements[^9] to provide both [verified
information]{.underline} to establish that the debtor is unable to pay
more than the amount offered and a full justification for compromise
that includes a discussion of the bases for compromise set out at 31
C.F.R. § 902.2(a). The debtor must also include in the discussion and
justification the factors at § 902.2(b), *e.g.*: age and health of the
debtor; present and potential income; inheritance prospects; the
possibility that assets have been concealed or improperly transferred by
the debtor; and the availability of assets or income that may be
realized by enforced collection proceedings.

If a debtor fails to provide the requested information, or if the
justification and supporting financial information is insufficient, the
Commission may reject the request. If we reject the offer of compromise,
and the debtor fails to make payment, the debts are delinquent and we
may immediately refer the debts to the Department of Justice for
enforced collection.[^10]

If, after reviewing the provisions discussed above, Debtor desires
further consideration of possible compromise of one or more debts, it
should submit an appropriate request to the Managing Director with all
required supporting financial documentation and justification within 15
days of the date of this letter.

Finally, you requested permission to satisfy the debt using an
installment payment plan. We invite your attention to our rule at 47
C.F.R. § 1.1914 and suggest that Debtor prepare its request to conform
to the standards.

Because this Request is returned without action, the collection action
is no longer suspended. If the Debtor fails to make the full payment
within 15 days of the date of this letter, the Commission will transfer
the full amount of the outstanding debt to the United States Department
of Treasury for debt collection. Pursuant to statute,[^11] because the
debt was not paid by the demand date, interest and penalties continued
to accrue from the demand date.

Sincerely,

> Rita Cookmeyer

Financial Policy Analyst

> Auctions and Spectrum Access Division
>
> Wireless Telecommunications Bureau

[^1]: Letter from Frederick M. Joyce and Christine McLaughlin, Venable,
    LLP, 575 7th Street, NW, Washington, D.C. to Margaret Wiener, Chief,
    Auctions and Spectrum Access Division, Wireless Telecommunications
    Bureau, Federal Communications Commission, Washington, D.C. 20554,
    dated December 23, 2004. (The letter refers to the Letter from Rita
    Cookmeyer, Financial Policy Analyst, Wireless Telecommunications
    Bureau, Federal Communications Commission, 20554, dated November 24,
    2004 ("Division Letter").

[^2]: 47 C.F.R. § 1.1915.

[^3]: 31 U.S.C. § 3717.

[^4]: 31 U.S.C. § 3711; 31 C.F.R. § 902.2; 47 C.F.R. § 1.1915.

[^5]: 47 C.F.R. § 1.1915.

[^6]: 31 C.F.R. § 902.1 and 47 C.F.R. § 1.1915.

[^7]: 31 C.F.R. § 902.2(a)(1) -- (4); 47 C.F.R. § 1.1915.

[^8]: 47 C.F.R. § 1.1915.

[^9]: 47 C.F.R. § 1.1915; 31 C.F.R. § 902.2.

[^10]: 47 C.F.R. § 1.1917.

[^11]: 31 U.S.C. § 3717.