Mobilicity is currently under creditor protection until September 26th. The latest court document reveals the struggling carrier has once again asked the court to extend its existence until December 1st, 2014. This will be the seventh time Mobilicity has asked for an extension.
Mobilicity, according to its latest legal filing, has “sufficient resources” to continue operations with its updated cash flow projections. The court document also notes that Mobilcity added 1697 net subscribers to its customer base in August, its best monthly haul since December 2012.
As for selling its business, Mobilicity notes the reason for the extension is to allow sufficient “time to review and consider the alternatives available to them.” There is no mention of WIND Mobile or Videotron in the document as potential suitors.
On the flip side, Mobilicity has performed some “operational changes” to “improve” its business over the past few months, namely eliminating some cell sites from its network that were “redundant or carried very little traffic,” in addition to closing its Vancouver sales office. Mobilicity is also ending its multi-month plans, insisting customers sign up for its month-to-month options.
Quadrangle, one of Mobilicity’s early backers, recently filed a claim with the Ontario Superior Court of Justice against Industry Canada for $1.2 billion, stating the government “breached its assurances that it would enforce foreign ownership rules, require incumbent carriers to provide roaming and access to cell towers at reasonable rates and terms, prevent unfair and anti-competitive competitive practices and allow spectrum to be transferred.”
Mobilicity’s CEO Anthony Booth recently stated the carrier is the “Bentley Motors of wireless.”
[source] Mobilicity E/Y [/source]
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