With Mobilicity’s latest attempt to sell itself to TELUS, this time for CA$350 million, awaiting a decision from Industry Canada, the beleaguered carrier has been granted yet another extension on its stay of proceedings under Canada’s Companies’ Creditors Arrangement Act (CCAA). The Mobilicity credit protection now runs to June 30, 2014.
The Court also appeared to realize that the current state of affairs seems to be dragging on and cannot continue. It has ordered that parties involved in trying to find a resolution to Mobilicity’s current difficulties attend mediation sessions. The goal will be “to mediate any outstanding issues relating to the successful completion of the Mobilicity Transaction,” namely finding a buyer as per its CCAA plan. Industry Canada confirmed that it will attend these sessions but a report today suggested that it was less than thrilled with Mobilicity’s decision to sell itself to TELUS in what the carrier called a “good outcome from Mobilicity’s restructuring efforts and extensive Sales Process.” TELUS’ third attempt to acquire Mobilicity could even culminate in it being excluded from Canada’s next spectrum auction.
Industry Minister James Moore is expected to make an announcement about the latest TELUS bid for Mobilicity in the near future.
Mobilicity has been operating under court protection since late September 2013. This latest extension will hopefully give it enough time to either get the TELUS transaction approved or, failing that, find a buyer that meets with approval from Industry Canada.
Source : Mobilicity