On Display | Bankruptcy & Corporate Restructuring

Prepaid Wireless Group Gets a Big Win Against One of the Big Three Network Providers

Irving E. Walker, Alicia L. Shelton, and Michael A. Solimani

December 11, 2025

Join Our Mailing List

Save as PDF

Congratulations to our client Prepaid Wireless Group (PWG) regarding its major win in court! PWG’s entire business relies on its wholesale contract with one of the major carriers, which is vital not only to PWG, but also the 3+ million low-income customers served through PWG’s MVNO partners. After 12 years of great success, PWG was hit with an unprecedented $33 million security-deposit demand that would have shut the company down.

To protect PWG and the communities it serves, we filed a Chapter 11 case on October 21, 2024. From day one, the carrier fought us at every turn; but our team fought harder.

Across months of litigation, including a six-day confirmation trial with 10 witnesses and extensive discovery battles, our team of Irving Walker, Alicia Shelton, and Michael Solimani, delivered.

On December 1, the bankruptcy court confirmed PWG’s reorganization plan and disallowed more than $39 million of the carrier’s disputed claims. The court has now entered our confirmation order, cementing the victory.

PWG will emerge from bankruptcy, keep its carrier contract, and continue delivering essential wireless services to millions of low-income customers. Our client couldn’t be more grateful, and neither could we.

As the law continues to evolve on these matters, please note that this article is current as of date and time of publication and may not reflect subsequent developments. The content and interpretation of the issues addressed herein is subject to change. Cole Schotz P.C. disclaims any and all liability with respect to actions taken or not taken based on any or all of the contents of this publication to the fullest extent permitted by law. This is for general informational purposes and does not constitute legal advice or create an attorney-client relationship. Do not act or refrain from acting upon the information contained in this publication without obtaining legal, financial and tax advice. For further information, please do not hesitate to reach out to your firm contact or to any of the attorneys listed in this publication. No aspect of this advertisement has been approved by the highest court in any state.