The IT Nerd

Much like Freddy Kruger or Jason, word of a Telus/Mobilicity hookup will not die. A press release went online late last night announcing a proposed deal. Here are the key facts:

The Transaction provides for a complete continuation of Mobilicity’s business for the benefit of its stakeholders:

• the vast majority of Mobilicity’s one hundred and sixty five thousand active subscribers will be able to seamlessly migrate onto TELUS’ advanced HSPA network after the transition.
• no foreseen changes to employee staffing levels as a result of the proposed transaction;
• all of Mobilicity’s retail landlords and licensors will have their contracts honoured;
• all of Mobilicity’s landlords and licensors who provide space for placement of Mobilicity’s dealers and their employees who sell Mobilicity’s products will continue to benefit from those arrangements;
• all service agreements with Mobilicity’s business partners will continue uninterrupted; and
• the trade claims of Mobilicity’s creditors will continue unaffected against the restructured Mobilicity and will be addressed in the ordinary course.

While the court approved monitor recommends approval of the deal, one wonders if it will be shot down seeing as previous attempts of a Telus/Mobilicity hookup have been shot out of the sky by the Canadian government. In any case, whatever the outcome is going to be, it has to happen before June 30th. Mobilicity has asked for an extension of the stay of proceedings that would expire on that date. I can see it being extended. But I suspect it will not be extended beyond that.

This entry was posted on April 18, 2014 at 9:50 am and is filed under Commentary with tags Mobilicity, Telus. 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.