Sprint, Clearwire in LTE, funding deal

wireless provider into bankruptcy court, The Wall Street Journal reports.

The deal helps resolve one of the more complicated entanglements in the US wireless industry. Sprint relies on Clearwire's network for high-speed wireless service, and Clearwire has counted on Sprint for funding.

PCWorld reports that the deals fleshed out a non-binding memorandum of understanding that the companies announced in late October and will help Clearwire to stay afloat and maintain its WiMax network, as well as build a planned LTE (long-term evolution) system.

As they detailed the new agreements, the companies also announced that Clearwire had made a scheduled $237 million interest payment on its debt, which Clearwire had suggested it might delay.

CNET adds that Sprint has also committed to providing additional equity funding to Clearwire in the event of an equity offering.

If Clearwire raises new equity between $400 million and $700 million, Sprint will participate in the offering, putting in up to $347 million, the company said.