It was rumoured and now it has happened. Mobilicity has filed for protection. Here’s the story from The Toronto Star:
The company announced it received protection from the Ontario Superior Court of Justice under the Companies’ Creditors Arrangement Act, which Mobilicity said will give it time to organize its affairs.
It added that Industry Canada is currently reviewing a new buyout proposal, but refused to disclose any details.
The proposal was submitted to Industry Canada “just recently,” said Mobilicity’s president and chief operating officer Stewart Lyons in an interview.
“The outside date is several weeks, but it may take shorter than that. We’re hoping it happens in a fairly short order,” he said, considering the company’s pressing circumstances. “Obviously, we’re encouraging the government to do something sooner rather than later.”
So, why would Industry Canada be involved? A couple of things come to mind. One of the other carriers might be trying to buy them. Perhaps one of the big three seeing as Telus tried and failed to do so earlier this year. Not to mention that Wind is interested in them as well. There could be a foreign buyer perhaps. That would require Industry Canada approval as well. Either way, things are about to get very interesting.
UPDATE: The Globe And Mail Is reporting that Telus is the potential buyer.
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Moblicity Files For Creditor Protection [UPDATED]
It was rumoured and now it has happened. Mobilicity has filed for protection. Here’s the story from The Toronto Star:
The company announced it received protection from the Ontario Superior Court of Justice under the Companies’ Creditors Arrangement Act, which Mobilicity said will give it time to organize its affairs.
It added that Industry Canada is currently reviewing a new buyout proposal, but refused to disclose any details.
The proposal was submitted to Industry Canada “just recently,” said Mobilicity’s president and chief operating officer Stewart Lyons in an interview.
“The outside date is several weeks, but it may take shorter than that. We’re hoping it happens in a fairly short order,” he said, considering the company’s pressing circumstances. “Obviously, we’re encouraging the government to do something sooner rather than later.”
So, why would Industry Canada be involved? A couple of things come to mind. One of the other carriers might be trying to buy them. Perhaps one of the big three seeing as Telus tried and failed to do so earlier this year. Not to mention that Wind is interested in them as well. There could be a foreign buyer perhaps. That would require Industry Canada approval as well. Either way, things are about to get very interesting.
UPDATE: The Globe And Mail Is reporting that Telus is the potential buyer.
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This entry was posted on September 30, 2013 at 9:22 pm and is filed under Commentary with tags Mobilicity. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.