Leap Wireless International was once again living up to its name with the company's vendor-financing paper jumping three or four points to trade in the 95-96 range last week. Market players said there are many new accounts that are looking for the back-end equity play, and holders of vendor-financing paper are slated to receive 961/2% of the new common stock when Leap emerges from bankruptcy. Last month, the name came under pressure, slipping into the 89-91 range from the low 90s with the stumbling equity markets. Jim Seines, Leap's director of investor relations and public affairs, declined to comment on the market activity.
Although Leap received confirmation of its disclosure statement last fall, the company has to receive approval from the Federal Communications Commission (FCC) for the transfer of wireless licenses before the company emerges from bankruptcy. Seines said the FCC was actively reviewing the company's application, but there was no way of estimating when the process would be completed. He did note that the commission has been long been a supporter of the company.