Mobilicity still searching for AWS-3 spectrum funding, asks judge for another creditor extension

Mobilicity is seeking another stay from creditors, based on files submitted to the Ontario Superior Court. The current protection period is set to end on January 30th, but the ailing new entrant is hoping to extend that to early May.

At the same time, company is seeking to locate capital for the upcoming AWS-3 auction, which is set to begin on March 3rd. The Globe and Mail notes that Mobilicity has been unable to find financial backing for the renewed venture (no kidding) from both existing creditors and independent financiers. It’s widely believed that Mobilicity will be purchased by WIND or Videotron in the coming months.

Mobilicity has until January 30th to find the necessary funds — just over $60 million, according to the Globe — for a refundable deposit, in order to participate in the auction.

This is the end game for the company: either they manage to buy spectrum, 60% of which is set aside for new entrants under the government’s new mandate, or they sell. Either way, by the time the next stay expires on May 8th, Mobilicity should know its fate.

WIND Mobile is also set to bid in the upcoming spectrum auction, but unlike Mobilicity should have few issues securing the necessary capital to do so. Mobilicity currently had 158,637 customers as of December 31st, which is a slight increase from its previous court filings. WIND, on the other hand, has over 800,000 and is growing.

WIND is also encouraging Mobilicity customers to port their numbers to the larger, more reliable network, promising six months of free service.

[source]Globe and Mail[/source]