Leap Wireless filed for Chapter 11 bankruptcy protection over the...
Leap Wireless filed for Chapter 11 bankruptcy protection over the weekend in U.S. Bankruptcy Court, San Diego. The wireless carrier said Mon. that it and its principal operating subsidiary, Cricket Communications, were close to reaching an agreement on a…
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plan to restructure outstanding debt. Leap said it had been involved in “active negotiations” with its creditor groups for a month. It said that during its voluntary reorganization in bankruptcy, it would continue daily operations and network service wouldn’t be interrupted. The operator said it didn’t plan to trim its work force, and suppliers would continue to be paid. Leap plans to have an agreement with creditors on a plan of reorganization in several that could differ from a preliminary draft plan filed with the court Mon. The company said it had been working with creditors to restructure its debt since Aug. “We currently have more than $100 million in cash and short-term investments at Cricket and, based on our current performance and our projections for the future, we believe that our restructured company will have adequate cash to operate the business while continuing to offer our service to customers without interruption and providing good opportunities for our employees,” Leap Chmn. Harvey White said. Leap said there would be “little or no value available for distribution” to its common shareholders.