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Clearwire shares plunge after WSJ report quotes CEO saying company may skip debt payment
NEW YORK (AP) ' The stock of wireless broadband network operator Clearwire is plunging after a report quoted its chief executive as saying that the company is weighing whether to make a large debt payment on Dec. 1.
Erik Prusch told The Wall Street Journal that if the company misses the $237 million payment, it has a 30-day grace period to make it.
Fears that the company will default and perhaps try to reorganize through bankruptcy proceedings sent the shares spiraling. Clearwire Corp.'s stock dropped 45 cents, or 24 percent, to $1.41 in late Friday trading.
Clearwire spokeswoman Susan Johnston says the company "does not comment on speculation" and "remains focused on growing its wholesale and retail business, and raising additional funds."