Mobilicity requests court to extend creditor protection (again), says ‘new customer acquisition remains stable’

Mobilicity, now known within the industry as Canada’s struggling wireless carrier, has been in creditor protection for months. After a lengthy auction period, Mobilicity announced in April that the best course of action would be a $350 million merger with TELUS where the company would acquire its 165,000 subscribers and AWS spectrum. At the time, William Aziz, Mobilicity’s Chief Restructuring Officer, stated, “the Transaction is a good outcome from Mobilicity’s restructuring efforts and extensive Sales Process. I am confident the Transaction will serve the best interests of Mobilicity’s customers and employees.”

Unfortunately for Mobilicity the deal fizzled away. A recent court doc revealed that Mobilicity had enough money in the bank to last until the first week of July, then fate would kick in. The courts have been generous to Mobilicity and have extended a “stay period” several times — the original date was set to expire on October 30th, 2013, then December 20th, and now set to expire on June 30th. Well, Mobilicity is back once again asking the courts to give a lending hand and have requested another extension, this time well past the summer months to September 26th.

Aziz stated in his notes to the court that Mobilicity now has 41 employees and 155,000 wireless subs, down 10,000 subs since April. Apparently the September 26th date has some merit as both revenues have increased, and “new customer acquisition remains stable, and monthly average revenue per customer continues to grow modestly.”

Perhaps Mobilicity might just make it. A new device in their lineup would help out… especially since they just released a new $25/month Unlimited Data, Talk, and Text “for life.” Mobilicity notes on its site that this plan is known as “The legend” and ironically is around until June 30th.

Source: Globe