Leap Wireless Says It Violated Agreements

Leap Wireless International Inc., a seller of unlimited local wireless service for a flat fee, said it violated some of its credit agreements when it chose not to pay interest on certain loans after some of its lenders decided to stop funding new requests.

The lenders’ decision to stop funding new requests came after Leap Wireless hired UBS Warburg to help the company find new funding and restructure some of its debt, Leap said.

Shares of San Diego-based Leap Wireless fell 12 cents to 28 cents on Nasdaq.