WiMax provider Clearwire has revealed today that it is to sell off at least $1.1 billion of its debt in a bid to keep the company going.
The move comes after a statement earlier this month that it may not be able to keep operating, due to huge losses and debt. On November 4 it said it expected losses to continue and that there was uncertainty surrounding the possibility for obtaining additional investment.
With the threat of the company going bust, there is little it can do but try to sell off its debt. It is expected to offer $175 million of its senior debt for sale, with a due date of 2015. $500 million is due in 2017, while a further $500 million is due by 2040.
The company, which is 54 percent owned by Sprint, is cutting 15 percent of its employees, along with reducing overall spending by between $100 million and $200 million. The financial difficulties have also caused an indefinite delay to a planned smartphone the company was working on.
With WiMax already struggling against the more supported LTE, the difficulties Clearwire is facing won’t do the proto-4G offering any good.