Clearwire Plunges; Company Says It's Focused On Growing Business
November 18, 2011 4:06 PM
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.
