Tags: Clearwire | Billion | Continue | Operating

Clearwire Says It Needs $1.7 Billion to Continue Operating

Wednesday, 01 May 2013 06:59 PM

Clearwire Corp., the money-losing wireless-service provider, said it needs at least $1.7 billion to make up a shortfall in funding and continue operating.

The company, based in Bellevue, Washington, needs the funds in the near term through 2014 to make up for a cash shortfall, it said in a filing Wednesday. The shortfall reflects 'less certain revenues and high fixed costs.'

Clearwire, which is majority owned by Sprint Nextel Corp., said last month it will draw $80 million in financing from Sprint for a third straight month, leaning on the wireless carrier for funding as it awaits a shareholder vote on a proposal by Sprint to buy the rest of the company.

Rival suitor, Dish Network Corp., seeking to gain control of valuable airwaves, has offered $25 billion for control of Sprint and $3.30 a share for Clearwire stock, more than Sprint’s $2.97-a-share offer.

In the filing Wednesday, Clearwire said Sprint’s offer "provides a compelling value to Clearwire minority shareholders." As part of the evaluation of the Sprint offer, Clearwire provided a business case where it requires $2 billion to $4 billion in additional funding.

Under its current structure, the "prospects of securing funding are highly uncertain," it said Wednesday.

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Clearwire Corp., the money-losing wireless-service provider, said it needs at least $1.7 billion to make up a shortfall in funding and continue operating.
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Wednesday, 01 May 2013 06:59 PM
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