Tomorrow, Clearwire is supposed to make a $237 million interest payment on its existing debt � a payment the company has warned it might skip.
With that key decision looming, the stock rallied in the closing minutes of trading this afternoon, after Reuters reported that the company is likely to reach a funding agreement with Sprint before year-end � and possibly in time for tomorrow�s interest payment deadline. While Sprint owns a majority of Clearwire, relations between the two companies have been testy in recent months.
Clearwire, the story notes, is seeking almost $1 billion in new financing to keep operating and pay for a network upgrade.
The company ended the third quarter with $711 million in cash.
As the story notes, Clearwire has a 30-day grace period in to make its debt interest payment if it fails to do so on December 1.
CLWR today rose 20 cents, or 12.7%, to $1.78.
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