Report: Clearwire likely to reach funding deal with Sprint Nextel

Clearwire (NASDAQ:CLWR) is likely to reach a funding agreement with its majority owner Sprint Nextel (NYSE:S) by the end of the year and possibly before Clearwire is in default on a loan, according to a Reuters report.

Citing a source familiar with the situation, Reuters reported that Clearwire is optimistic about reaching a funding deal with Sprint. Clearwire has said it may skip a $237 million debt payment due Dec. 1 in an effort to conserve cash. The company has a 30-day grace period before it is considered in default of the loan.

Clearwire had $698 million in cash and short-term investments on hand Sept. 30 and has enough money to make the debt payment. Skipping the payment has raised concerns about the company's liquidity and whether or not it can stay out of bankruptcy court.

Clearwire, in which Sprint owns a 54 percent stake, wants to build out a TD-LTE network and needs around $150 million to $300 million to maintain its legacy WiMAX network. Earlier this month, Clearwire CEO Erik Prusch said "there remains a gap" between Clearwire and Sprint, but he said he hopes the companies will be able to reach an agreement on possible funding and network roaming.

Sprint recently disclosed a non-binding agreement between Sprint and Clearwire that will cover the design of Clearwire's planned LTE network, but has yet to fork over any money.

For more:
- see this Reuters article

Related articles:
Will Sprint let Clearwire slip into bankruptcy?
Sprint's LTE plans reveal high-stakes leverage game with Clearwire
Sprint raises $4B in debt offering, hints at Clearwire funding
Clearwire CEO: 'There remains a gap' between Clearwire and Sprint
Clearwire inks wholesale deal with NetZero Internet provider
Clearwire ditches postpaid service, offers prepaid unlimited at $50
Clearwire to deploy LTE - if it can get additional funding

Suggested Articles

While awareness of 5G-related cybersecurity risks is high among enterprises, more needs to be done to prepare, according to a new survey from AT&T.

Synchronoss is working with the CCMI joint venture to help deliver messaging based on the Rich Communications Services (RCS) standard.

The OCP also has a spec for DCSGs, but Axel Clauberg, chairman of TIP, said that TIP members had some specific requirements for a DCSG.