Teligent has thrown in the towel and will file Chapter 11 bankruptcy, it says in a statement issued today.

The company says it expects to continue its day-to-day operations while reorganizing, and adds it has "entered into an interim arrangement with its lenders to provide funds, subject to certain conditions, for near-term operations."

The company had a deadline of today to raise $350 million it needed to prevent default on a credit agreement. It had already missed one deadline extension, due May 15.

Observers had been watching through the weekend for the bankruptcy, filed in U.S. Bankruptcy Court for the Southern District of New York, speculating that IDT Corp. may bid for Teligent's assets.

A Teligent spokeswoman would not comment on any bidding.

But IDT, which recently increased its ownership in Teligent, is said to be hoping to help the company emerge from the bankruptcy intact. It also hopes to merge Teligent and ICG Communications, it said in an SEC filing.

IDT subsidiary IDT Investments Inc. earlier this month agreed that affiliates of Hicks, Muse, Tate & Furst Inc. would receive shares of IDT Investments' Series B Convertible Preferred Stock in exchange for the affiliates' stakes in Teligent and ICG.

The deal means IDT would own about 37 percent of Teligent and 42 percent of ICG voting power, IDT reported at the time.

IDT also recently purchased Liberty Media's 33.7 percent stake in Teligent and 33 percent of ICG, also from Liberty Media. ICG filed for Chapter 11 in November.