Teligent, which uses radio signals to transmit voice and data services, had an impressive list of investors including Microsoft and Japan's Nippon Telegraph and Telephone.
But the company continued to rack up huge losses in each successive quarter. At the end of fiscal 2000, Teligent had $1.21 billion in assets and $1.65 billion in debts, according to Monday's bankruptcy filing.
Company executives said its lenders have agreed to supply some additional funding to maintain its day-to-day operations until it completes its reorganization.
"The demand for last-mile broadband access remains insatiable," Chief Executive Yoav Krill said in a statement. "Our goal is to emerge from this reorganization with the appropriate cost framework to allow us to maximize the value of our nationwide network, positioning the company for significant future growth."