The hedge fund Aurelius Capital Management LP had offered US$80 million in financing last Tuesday to Clearwire Corp, This is the alternative offered to the wireless service provider from the convertible financing offered by its majority shareholder Sprint Nextel.

Sprint Nextel is trying to acquire the rest of Clearwire and has instituted a loan package financing for shareholdings swap with the company. This move by the hedge fund is the latest chapter of in the Clearwire saga which involves purchase of 49% of the shares that the company does not own by Sprint.

Many shareholders have criticized the deal from Sprint Nextel. Just last week, minority shareholder Crest Financial has offered US$240 million in debt financing to Clearwire, a clear indication of alternatives that Clearwire can opt aside from the Sprint offer.

In a statement, Clearwire confirmed receipt of an offer from Aurelius and it said that the board's special committee 'would evaluate the offer to determine what if any action to take.'