NEW YORK—A judge in the U.S. Bankruptcy Court in Delaware gave groups bidding for bankrupt Winstar Communications another week to secure additional financing.
A ruling on the case was expected to be handed down Monday, but lawyers for Shearman & Sterling, the law firm representing the local multipoint distribution services (LMDS) provider, said no group had come forward with adequate financing, and Winstar intended to convert the case to Chapter 7 and liquidate the assets. The judge ordered Winstar to keep operating and give bidders one more week to gather more money.
The new deadline for submitting bids is 14 December. If no bidder meets the financing requirements at that time, Winstar could be liquidated.
Winstar is more than US$4 billion in debt.
