A Leap back into solvency

CDMA network operator Leap Wireless, which operates under the Cricket brand name in 20 states stretching from New York to California, is preparing to emerge from Chapter 11 bankruptcy. The US Bankruptcy Court for the Southern District of California has cleared the cellco’s reorganisation plan, paving the way for Leap to complete its financial restructuring and re-emerge by reducing the company’s debt by more than 80%. The San Diego-based operator says that its long-term debt will be reduced from more than USD2.4 billion to approximately USD426 million, with around USD100 million in cash on its balance sheet.