Mobilicity just keeps on trucking. While many have counted the struggling carrier out, a recent court filing reveals that William Aziz, Mobilicity’s chief restructuring officer, asked an Ontario judge for yet another stay from creditors until August 31st, 2015.
According to the court document, Mobilicity says its “operations have continued in the ordinary course and without interruption” and expects its subscriber base to “remains healthy,” totalling 157,000 active subscribers, for the foreseeable future. That number is down slightly from 158,600 at the end of December, 2014. The carrier made a point that Wind Mobile’s 6-month free service promotion was a primary cause of customer churn.
Mobilicity seems to be to operating as is and should float itself until the end of August “without requiring financing.”
“At this time, assuming Mobilicity continues operations in substantially the same manner as it has done during the CCAA proceeding to date, the Cash Flow Statement estimates that, during the Cash Flow Period, the Applicants will have total receipts from operations of approximately $22.5 million and total disbursements of approximately $25.4 million, resulting in a projected net cash outflow from operations of $2.9 million,” said the filing.
Mobilicity recently refreshed its device lineup and unveiled a new weekend promotion that dropped its popular $25 per month talk and text plan to $15.
Update – May 1st: It’s official. Mobilicity has just announced that the courts have obtained an extension from its creditors until August 31st.
“It continues to be business as usual for our customers and suppliers,” said Bill Aziz, Chief Restructuring Officer at Mobilicity. “As the wireless spectrum landscape evolves, the Stay Extension provides Mobilicity with a stable environment in which to evaluate available options and negotiate a value maximizing transaction.”
[source] EY [/source]