Indebted Canadian cellco Mobilicity has received its eighth court-sanctioned extension to its creditor protection, from 1 December 2014 until 30 January 2015, while it continues to seek a buyer for its business, the Globe & Mail reports. In its latest court filing Mobilicity reported 154,900 active subscribers at 31 October, down by 1,400 since August, Canadian website MobileSyrup noted, as the struggling operator continues to compete via discount offers and promotions. The court document also disclosed that Mobilicity has ‘been engaged in discussions with several parties who have expressed interest in advancing a transaction.’ Mobilicity had CAD415 million (USD368 million) in long-term debt as of 31 March, but this week’s filings state it is currently operating on a ‘cash flow break-even basis’.
Meanwhile this week Mobilicity’s largest bondholder Catalyst Capital stated it is willing to contribute funding towards Mobilicity bidding in Industry Canada’s AWS-3 mobile spectrum auction set to take place in March 2015, with a preliminary deadline for bid applications of 30 January 2015. The Globe & Mail writes that Catalyst told the court of its CAD400 million financing plan, of which it was willing to advance up to CAD300 million, although the Toronto-based fund admitted that few direct discussions have taken place with Mobilicity, while it has received little specific feedback on its proposals. Catalyst was excluded from an additional round of financing involving other debtholders last year and has complained of being shut out of discussions with other parties regarding potential deals with Mobilicity. Furthermore, whilst granting Mobilicity’s latest creditor protection period, the Ontario Court of Justice rejected a request from Catalyst for a court-ordered meeting with the cellco.
Thanks to TeleGeograpy for the article.