A District Court approved terms of Winstar Communications Inc.'s DIP financing. The financing has an initial availability of up to $75 million, which potentially could reach $300 million if certain conditions are satisfied, Winstar reports.
The financing, approved in the U.S. Bankruptcy Court for the District of Delaware, will be used to fund ongoing business operations.
Winstar filed for Chapter 11 bankruptcy on April 18 and sued Lucent Technologies for $10 billion in what Winstar said was a breach of contract that forced the bankruptcy.
The financing approval will allow Winstar to "operate in the normal course of business during the Chapter 11 case," Chair and CEO William J. Rouhana Jr. said in a statement.