Mobilicity was first granted creditor protection back in September 2013. Chief restructuring officer William Aziz today told The Toronto Star that the beleaguered Canadian carrier is headed back to court on February 26, the day this protection is set to run out, to ask for another extension as it continues to find itself a buyer.
The company is reportedly reviewing a number of bids. Among them are ones from TELUS Mobility for about CA$350 million, another from Videotron for some CA$200 million and one from WIND Mobile for CA$190 million. While TELUS appears to the be top contender for Mobilicity’s spectrum licenses, infrastructure and 175,000 or so customers, the Canadian government has repeatedly indicated that it does not support this move and would block it. That could force Mobilicity to accept a lower bid that does not cover all that is owed to creditors and likely setting up bitter court battles for years to come.
Meanwhile, Mobilicity still has sufficient funds to continue operating and has “maintained stability.” It recently implemented a number of cost reductions including moving into smaller headquarters and letting go of “employees who’s services were no longer required.”
Time may be running for Mobilicity. In a separate report, one of the carrier’s creditors is looking for payment of its bills. Amdocs Canadian Managed Services Inc., the company currently running Mobilicity’s customer service and support systems, is looking for payment on the CA$1.7 million it is owed for its services.
There is no word yet on how much longer Mobilicity is looking to extend creditor protection this time around.
Sources : The Toronto Star // The Financial Post