Mobilicity’s plan to put itself up for auction has been approved by Ontario courts and is now set to move ahead. The company is now moving quickly in a bid to “market for sale all or substantially all of the business and assets or shares of Mobilicity.” The auction will be conducted by Mobilicity and their Court-appointed monitor, Ernst & Young Inc.
Time is of the essence for the struggling carrier. Its protection from creditors under Canada’s Companies’ Creditors Arrangement Act (CCAA) extend only until December 20 unless it is extended further by a new court order.
Potential bidders will need to confirm their interest by December 2. Qualified bidders will then have until December 9, effectively a week, to submit their final bids.
Mobilicity launched in 2010 after acquiring spectrum licenses worth CA$243 million in Canada’s last spectrum auction. As of September, it had some 189,000 customers (down from a high of about 250,000 earlier in the year).
Mobilicity Announces Court Sanctioned Sale Process
TORONTO, Nov. 14, 2013 /CNW/ – Data & Audio-Visual Enterprises Holdings Inc. and its affiliates (collectively, Mobilicity) announce that the Ontario Superior Court of Justice (Commercial List) has approved the plan of Mobilicity and the Court-appointed monitor, Ernst & Young Inc. (the “Monitor“), to conduct certain procedures to market for sale all or substantially all of the business and assets or shares of Mobilicity (the “Sale Procedures“).
The Sale Procedures contain certain deadlines, including a requirement that potential bidders deliver certain qualification information no later than 10:00 p.m. (ET) on December 2, 2013, and a requirement that qualified bidders submit final bids no later than 5:00 p.m. (ET) on December 9, 2013.
Details of the Sale Procedures, including the process for interested parties to request access to conduct due diligence, are available from the Monitor’s website at www.ey.com/ca/mobilicity.
About Mobilicity (DAVE Wireless)
Formerly known as Data & Audio-Visual Enterprises Wireless Inc. (DAVE Wireless), further information about Mobilicity can be found at www.mobilicity.ca.