Mobilicity given until December 20 to find buyer


Mobilicity today got more time from Ontario courts to find itself a buyer. Already under protection from creditors under Canada’s Companies’ Creditors Arrangement Act (CCAA), Justice Frank Newbould of the Ontario Superior Court of Justice extended the protection period until December 20. It had been set to expire on October 30. The company requested the extension as it works to obtain the federal government’s approval for a proposed sale.

Mobilicity has not said who the potential buyer is. Sources have told The Globe and Mail that it is none other than TELUS which attempted to buy the struggling carrier earlier this summer only to have the deal rejected by the Canadian government. Discussions are described as “very active and very dynamic” by Mobilicity lawyer Orestes Pasparakis.

TELUS just yesterday got Industry Canada approval to acquire Public Mobile, another fledgling carrier, that has been struggling of late. That news suggests a Mobilicity deal, whether with TELUS or another buyer, could have better luck this time around.

Mobilicity still has 189,239 active subscribers, down from about 236,000 in at the end of December 2012.

More changes are in the cards for Mobilicity as well. Current Mobilicity President and Chief Operating Officer Stewart Lyons will step down on October 31. Chief Customer Officer Anthony Booth, currently Chief Customer Office, will step into the role on an interim basis.

Source : The Globe and Mail