Clearwire Financial Worries Continue
CEO Says They'll Miss December 1 Debt Payment
Back in August Clearwire announced they were migrating to LTE
, a move that will cost the already cash-strapped company another $600 million. Clearwire's CEO didn't make investors any more comfortable about Clearwire's financial footing with he announced the company would likely be missing a $231 million debt interest payment
due December 1. Investor fears of bankruptcy once again pummeled Clearwire stock last Friday, which at one point was down 31%. One analyst is calling Clearwire's statement a simple ploy to get more cash
"There’s been some speculation out there they could throw this out as a tactical method for stirring something up with Sprint or a third party," Fruit, who is based in Minneapolis and owns Clearwire bonds, said in a telephone interview. "The underlying fundamentals haven’t really changed at all."
Sprint and Clearwire are rumored to be in the last stages of an extension of their wholesale arrangement. Clearwire's presence was clearly absent when Sprint announced their intentions to build their own LTE network
earlier this year. Of course Sprint also may be perfectly happy to let Clearwire collapse, gaining a lot of new spectrum assets on the cheap.