Beleaguered carrier Mobilicity is headed back to the courts again to seek a further another extension on its stay of proceedings under Canada’s Companies’ Creditors Arrangement Act (CCAA). The request would extend the stay from March 31 to April 30, 2014 “to provide the Applicants with time to complete the Sale Process and bring forward a transaction or transactions for this Court’s approval.”
Mobility put itself up for auction in late 2013 and received a number of bids that it is still reviewing. The top bid at CA$350 million appears to have come from TELUS. Videotron reportedly bid about CA$200 million and WIND Mobile about CA$190 million. While the TELUS bid appears a clear winner over other ones, the situation has been complicated by the Canadian government’s repeated indications that it does not support the move and would oppose it. This has likely prompted ongoing discussions with various parties as Mobilicity tries to work out the best deal for itself.
According to court documents, Mobilicity has “sufficient liquidity to fund operations” for the extension period. It also expects to see its subscriber base “continue to moderately decrease” as it continues to work through this sale process.
Sources : Ernst & Young (PDF) // @RitaTrichur