The upstart cell phone carrier that I’ve had on death watch for sometime now seems that Mobilicity has enough of a life to get financing to compete for the upcoming AWS-3 spectrum auction. Here’s what The Globe And Mail had to say:
Last Thursday, the company said it had still not secured the necessary backing, but William Aziz, the chief restructuring officer, said in an affidavit Monday that the company has reached an agreement to enter into a second debtor-in-possession (DIP) financing for $65-million from some of the company’s existing debt holders.
The agreement is structured off an earlier DIP financing arrangement for $30-million the company entered into when it first filed for protection under the Companies’ Creditors Arrangement Act.
The funding is contingent on court approval, which the company is seeking at a motion in Toronto scheduled for Wednesday.
The company plans to create a new, wholly owned subsidiary called Mobilicity SpectrumCo for the sole purpose of applying to participate in the auction.
This has to be considered a last chance for the company as not getting this spectrum would leave the company at a huge competitive disadvantage. So if this fails, one would think that Mobilicity which has been under creditor protection since September 2013 is done.
Some key dates to keep in mind:
- Deposits are due on Friday for the AWS-3 spectrum auction. That’s when we’ll see if Mobilicity truly has the cash to compete in this auction.
- March 3rd is the deadline for sealed bids. It will be shortly after that we’ll find out if Mobilicity will be around for the long term.
Add to that the fact that Mobilicity is seeking an extension of a stay of legal proceedings against it from Jan. 30 to May 8. So that could really change the landscape if they don’t get that.
This is a story to keep an eye on as things are about to get very interesting I suspect.
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This entry was posted on January 27, 2015 at 10:27 am and is filed under Commentary with tags Mobilicity. You can follow any responses to this entry through the RSS 2.0 feed.
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Mobilicity Lives…… At Least For Now As It Secures Financing To Compete For New Spectrum
The upstart cell phone carrier that I’ve had on death watch for sometime now seems that Mobilicity has enough of a life to get financing to compete for the upcoming AWS-3 spectrum auction. Here’s what The Globe And Mail had to say:
Last Thursday, the company said it had still not secured the necessary backing, but William Aziz, the chief restructuring officer, said in an affidavit Monday that the company has reached an agreement to enter into a second debtor-in-possession (DIP) financing for $65-million from some of the company’s existing debt holders.
The agreement is structured off an earlier DIP financing arrangement for $30-million the company entered into when it first filed for protection under the Companies’ Creditors Arrangement Act.
The funding is contingent on court approval, which the company is seeking at a motion in Toronto scheduled for Wednesday.
The company plans to create a new, wholly owned subsidiary called Mobilicity SpectrumCo for the sole purpose of applying to participate in the auction.
This has to be considered a last chance for the company as not getting this spectrum would leave the company at a huge competitive disadvantage. So if this fails, one would think that Mobilicity which has been under creditor protection since September 2013 is done.
Some key dates to keep in mind:
Add to that the fact that Mobilicity is seeking an extension of a stay of legal proceedings against it from Jan. 30 to May 8. So that could really change the landscape if they don’t get that.
This is a story to keep an eye on as things are about to get very interesting I suspect.
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This entry was posted on January 27, 2015 at 10:27 am 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.