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Friday, March 29, 2024

Clearwire Plunges; Company Says It’s Focused On Growing Business

Courtesy of Benzinga.

Shares of wireless broadband provider Clearwire (Nasdaq: CLWR) are off more than 24% on heavy volume in late trading after the stock was halted several times prior to news being released the company is mulling whether to make a massive debt payment on Dec. 1.

The unprofitable company could make a $237 million debt payment that CEO Erik Prusch told the Wall Street Journal would be a significant drain on Clearwire’s cash position.

Earlier this month, Washington-based Clearwire said it has adequate working capital for a year, but that it needs $1 billion for its operations and to upgrade its network from the WiMax technology to long-term evolution, or LTE, Bloomberg reported.

Clearwire has $4 billion in debt. In an interview with Benzinga, a Clearwire spokesperson said the company remains focused on growing its retail and wholesale businesses and raising additional capital.

For more Benzinga, visit Benzinga Professional Service, Value Investor, and Stocks Under $5.

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