iPCS likely to declare bankruptcy

ATLANTA-Sprint PCS affiliate AirGate PCS Inc. said its subsidiary, iPCS, is working toward financial restructuring that will likely involve a federal bankruptcy proceeding. AirGate also said it will delay filing its annual report on Form 10-K until Jan. 14, allowing time to complete the review of certain matters and to complete its fiscal year 2002 audit.

AirGate expects to take $735 million in impairment charges for the year ending Sept. 30, 2002, related to iPCS, but the company said it expects its operations to continue independent of the outcome iPCS’ restructuring.

AirGate’s stock reacted negatively to the news, dropping 25 percent to trade at 65 cents per share.