No investor in a company ever wants to hear the company name and “bankruptcy” in the same sentence. But that is precisely what Clearwire’s interim CEO did at the recent CTIA show. Talking about Clearwire’s current challenges,John Stanton, Clearwire chairman and interim chief executive officer, said the firm remains focused on raising capital to continue to build out its network, but also said he didn’t rule out bankruptcy as a possibility.
“Bankruptcy is always an ugly option,” he said. “That dynamic is not in the best interest of the shareholders,”Stanton said. The reason Clearwire even is talking about that possible contingency is that it is a public company and already knows it will run out of operating capital by the end of 2011 unless new investment can be found. The company currently does not foresee reaching a break even position, on an operating cash flow basis, until sometime in 2012.


