Update: According to court documents, Mobilicity has been granted creditor protection until January 30th. However, the judge rejected Catalyst Capital’s request to assist the struggling carriers bid for additional spectrum.
Mobilicity is a fighter. During the 2008 wireless spectrum auction, the carrier dished out $243.1-million for AWS spectrum 10 licenses in Toronto, Vancouver, Calgary, Edmonton and Ottawa.
Now, several years later, it is in creditor protection and possibly on the cusp of bankruptcy. Mobilicity, for the seventh time, was granted a stay on September 19th until December 1st. According to the latest court filing, Mobilicity has once again asked the courts for more time to find a prospective buyer for its business, this time until January 30th, 2015.
Mobilicity is now reporting “approximately 154,900 active subscribers at October 31,” which is a drop of 1,400 subs since August. The reason given for the customer loss was caused by its decision to begin only offering month-to-month plans to their existing and new customers. In addition, “customer churn was approximately ten percent lower (4%) in October 2014 than the average churn during July through September 2014.”
The court document revealed that Mobilicity has “been engaged in discussions with several parties who have expressed interest in advancing a transaction involving the Applicants.” Earlier this week it was revealed that Toronto-based private equity firm Catalyst Capital Group, which is one of Mobilicity’s largest bondholders, stated it has interest in providing additional funding for Mobilicity to bid on upcoming spectrum in two auctions early next year.
To potentially increase its subscriber base, Mobilicity is drastically discounting its monthly plans for Black Friday and the upcoming holiday season.