Cash-strapped Mobilicity has asked the Ontario Super Court of Justice to extend its creditor protection to June 30 to protect the company from legal action, reports The Globe and Mail:
Mobilicity, which has been under creditor protection since September, filed materials this week asking the Ontario Superior Court of Justice for a further extension of the “stay” period shielding it from legal action to Sept. 26 from June 30.
Bill Aziz, Mobilicity’s chief restructuring officer, mentioned in a sworn affidavit earlier this week the third Telus bid for the company had ended, saying “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.”
The company said by the end of June, it expects to have 155,000 active subscribers and 41 full time employees, a drop compared to a year ago when it had 250,000 customers and 150 employees.
The filing notes the company’s revenue and cash flow has been higher than it anticipated, allowing it to continue operating until September 26, saying “new customer acquisition remains stable, and monthly average revenue per customer continues to grow modestly.”
Just yesterday we told you about Mobilicity’s current promo offering $25/month unlimited talk, text and data plan ‘for life’, which just so happens to run until June 30—the day it wants it creditor protection extended to.
Mobilicity might be holding out for some sort of miracle to happen, such as the possibility of Quebecor acquiring the company, part of the latter’s recent plans to bring low-cost wireless to Canadians, as it continues to lobby the government for more spectrum and favourable roaming rates from the Big 3.
Update: The Star reports Mobilicity has been granted an extension until September 26 for creditor protection.