Mobilicity to extend creditor protection again

25 Jun 2014

The Globe & Mail reports that struggling Canadian mobile operator Mobilicity is today asking the Ontario Superior Court of Justice to extend its creditor protection period once more to allow it to evaluate its options after would-be suitor Telus withdraw a takeover bid for a third time last month. Mobilicity, which has been under creditor protection since September 2013, has filed for a further extension of the ‘stay’ period shielding it from legal action from 30 June to 26 September 2014. Bill Aziz, Mobilicity’s chief restructuring officer, commented that ‘In light of the ongoing mediation, [Mobilicity] is not in a position to comment further at this point on available next steps regarding any transactions or other restructuring alternatives.’ Mr Aziz added a positive note in the company’s filing, saying that revenue and cash flow have been higher than expected and that Mobilicity expects to continue operations until 26 September, while claiming that ‘new customer acquisition remains stable, and monthly average revenue per customer continues to grow modestly.’ Mobilicity expects to have 155,000 subscribers at end-June (down from around 175,000 at the start of the year).

Canada, Mobilicity