Mobilicity delays vote on recapitalization plan, says they need “to consider additional potential alternatives”

Ian Hardy

July 3, 2013 11:58am

Screen shot 2013-07-03 at 9.27.54 AM
One could it a coincidence, but Mobilicity has once again shifted the date for their shareholders voting on the recapitalization plan. Debtholders were originally scheduled to vote today, but will now pencil in July 10th as the defining date. Stewart Lyons, Mobilicity’s President and COO, said “The Board has rescheduled the vote on the recapitalization plan to allow it to consider additional potential alternatives for the Company and its stakeholders, including customers, dealers and employees.”

After the failed $380 million buyout from TELUS, the company is currently looking for a buyer. Verizon is reportedly interested and this 1-week postponement could be a sign of progress. Mobilicity is currently $450 million in debt, losing approximately $30 million every month, has 250,000 wireless subscribers, and 150 employees.

Source: CNW

  • Mobile Nerdy

    Heres a potential alternative – FAIL – and go away…

    • chris

      You must be fun at parties.

    • Mobile Nerdy

      Like a boss

  • skullan

    Hope this is truly a delay to consider selling to Verizon.

    • hoo dat

      A deal with Verizon is not going to be plain sailing. Catalyst has clearly stated they will scuttle any deal unless they are partners with Verizon in the Mobilicity/WIND buyouts.

    • Accophox

      Verizon taking over isn’t a great idea – they’re known for the most expensive plans in the states (even after taking into account family plans). Not really a good fit, unless they decide that they’re going to dump the entire mobi customer base.

  • Techie01

    So why is the Mobilicity board of Directors marching in front of Rogers building? Looking for a job after the buyout?

    • CADDMan71

      The picture used above was taken soon after Mobilicity went on the air where one of their first failed attempts at marketing was having their….uh….happy Magenta Militia march in front of the Rogers head office.

  • unhappy

    mobilicity owes money to their dealers