Mobilicity Near Bankrupt?

The Financial Post is reporting that Canadian cell phone carrier Mobilicity is near bankrupt and is willing to transferring 200,000 customers to Wind Mobile for little to no compensation:

The National Post has learned the Toronto-area carrier, formally known as Data & Audio-Visual Enterprises (DAVE) Wireless, hopes to shut down its money-losing consumer operations by the end of the month. Two separate industry sources said the agreement, which is still being negotiated, would see Toronto-based Wind assume Mobilicity’s customers for little-to-no financial compensation. Investors who hold Mobilicity’s debt would retain the carrier’s spectrum licences and its tax losses in the hopes of selling those assets down the road to a separate buyer.

The question is if this is true or not. The Edmonton Journal is reporting that Mobilicity is denying the Financial Post story:

“The report that we are transferring our subscriber base to Wind is not true,” said Mobilicity’s chief restructuring officer Bill Aziz in a statement.

Now Wind isn’t commenting on the story, but the timing is interesting given the 17th is the deadline to put down deposits for the spectrum auction. Might this news change the plans of some of the entrants? We shall see.

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