Wireless backhaul provider FiberTower is now in default of debt notes due in 2016 and said it has received notice that it has fallen out of compliance with the Nasdaq's listing rules as it has failed to meet the minimum bid price requirements for continued listing.
The company now has 180 days to regain compliance. FiberTower's stock must close at $1 per share or more for 10 consecutive days or it faces delisting from Nasdaq. FiberTower's stock closed at 21 cents a share on Friday.
Last month FiberTower said it elected not to make a $1.3-million semi-annual interest payment on its Convertible Senior Secured Notes. It has now defaulted on that loan. FiberTower said it has begun discussions with certain holders of its debt and is continuing the evaluate its options to manage the debt.
FiberTower's business has been heavily reliant on Clearwire (NASDAQ:CLWR), which slowed down its rollout of WiMAX throughout the year. More recently the operator has gained funding from partner Sprint Nextel (NYSE:S) and through an public offering to pay for its transition to TD-LTE technology. FiberTower has also seen increasing churn in TDM services as the wireless carriers accelerate their migration to Ethernet backhaul.
For more:
- see this release
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