Xanadoo Co., a high-speed wireless internet provider, will give a $1.6 million loan to its subsidiaries to pull them through the initial bankruptcy period. 

Court papers show that Xanadoo Co., which is not in the process of bankruptcy, will give the loan to Xanadoo Holdings Inc. The loan will be used to support operating costs, such as paying employees and vendors. The court will have the final say whether the loan is to be approved or not.

Should Xanadoo Holdings get the loan, it could take one of two options for Chapter 11 bankruptcy. The first option is to get new financing since the senior loan holders backed out of the company. Since the company owes in excess of $52 million in notes, new funding would help support the company. Or the company could sell its 23 Federal Communications Commission-issued licenses. This sale is estimated to bring in between $200 million and $400 million alone.

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