Clearwire (CLWR) Shares Sink; Co. Considering Not Making Dec. 1st Debt Payment

November 18, 2011 2:56 PM EST
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Shares of Clearwire (Nasdaq: CLWR) are trading down 22 percent following four -- yes four -- circuit breaker halts on rumors management is debating whether to pay the $237 million debt payment due on December 1st.

Clearwire execs have highlighted the need for substantial capital and liquidity over the next years span just to keep business afloat. The company’s CEO Erik Prusch noted the debt payment would drain a large portion of the company's cash, thus Friday's rumor.

The WSJ reports Clearwire has a 30-day grace period to pay the debt following December 1st.

The decision to not make the payment could result in more volatility in the stock’s price as investors would probably raise concerns about Clearwire's ability to effectively restructure its debt.

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