Winstar Files For Bankruptcy, Sues Lucent for $10 Billion

Winstar Communications (WCII Quote) voluntarily filed for protection under Chapter 11 of the bankruptcy code, and the company filed a $10 billion lawsuit against Lucent Technologies (LU Quote), alleging that the telecom equipment maker didn't live up to the obligations of a supply agreement between the companies.

The broadband communications company said the bankruptcy filing won't affect its day-to-day operations. Winstar arranged a debtor-in-possession financing pact with an initial commitment of $75 million from a group of banks including CIBC, Citicorp and Credit Suisse First Boston. The commitment may be increased to as much as $300 million. ...