Clearwire is considering skipping a big debt payment that comes due in two weeks. The Wimax operator had USD 698 million in cash and short-term investments on 30 September and the USD 237 million debt payment is due 1 December. CEO Erik Prusch told the Wall Street Journal the payment "would be a significant drain of our cash, so we have to evaluate everything in terms of our decision of where we're going". The company has a 30-day grace period after 1 December to make the payment. Prusch said he is focused on cutting new service deals and securing more funding. The company is discussing its options with restructuring experts at Blackstone and law firm Kirkland & Ellis, people familiar with the matter told the paper. The CEO declined to comment on whether the company would need to restructure its debts in or out of bankruptcy court. Whether the company makes the debt payment will also have an impact on whether its main shareholder Sprint will provide further financing for company.
