Mobilicity Looks To Extend Creditor Protection
William Aziz, chief restructuring officer at Mobilicity, said on Tuesday that the wireless service provider is set to appear before a judge on February 26 to seek another extension on its creditor protection plan.
Aziz said an official statement will be filed with the Superior Court on Wednesday, which happens to be the same day their current stay expires. The length of Mobilicity’s extension is yet to be determined.
The Canadian wireless carrier has received multiple requests to acquire all parts of its business, including its customer base of approximately 175,000 and all of its infrastructure. There is a possibility that another company will purchase its radio wave spectrum, but Aziz confirms that they have not requested another transfer of its spectrum licenses.
Many companies including B.C.-based carrier Telus have attempted to acquire Mobilicity’s wireless spectrum. Ottawa has rejected the transfers because it would decrease the competition in Canada’s wireless industry.
At the end of September, Mobilicity was granted protection after the company attempted to win market share from the more prominent wireless carriers in Canada, including Rogers, Bell, and Telus. The GTA-based telecom is currently seeking a sale under Ernst and Young LLP, a court appointed monitor.
Mobilicity creditor Catalyst Capital Group Inc. has said it would consider supporting a merger of Mobilicity and another smaller carrier, Wind Mobile to form a fourth major competitor in Canada’s wireless market.
Various sources have reported that Wind made a bid for Mobilicity for approximately $190 million. In a report that was released today, Ottawa revealed the winners of the 700MHz wireless spectrum auction. Click here to read the full story.
[via The Star]