Winstar Communications Inc.'s request for a approval of a $300 million credit line was turned down by a federal judge. The funds would go toward financing the company's operations during bankruptcy.
The judge only postponed the ruling until the company works out technical details of the bankruptcy, Winstar spokesman Peter Duda told CEDaily. The company still has authorization for up to $75 million.
"The company is confident it will get the issues resolved" and receive the approval, Duda says.
The company filed for Chapter 11 last month, and filed a breach of contract lawsuit against Lucent Technologies.