Amp'd Mobile On Its Way to the Grave Yard
July 23, 2007 8:49 AM | MVNO | Comments (0)
Amp'd Mobile is about to go to the grave yard. It seems the MVNO (Mobile Virtual Network Operators) can't get itself out of bankruptcy and is looking to sell itself or parts of itself. In a recent filing with the United States Bankruptcy Court (District of Delaware), Amp'd Mobile is seeking to expedite bidding procedures in connection with the sale of some or all of its assets. Verizon Wireless last Tuesday filed a motion seeking permission to immediately disconnect service and terminate its wholesale agreement with Amp'd. In its filing, Verizon stated that after 46 days into the case, Amp'd had yet to obtain debtor-in-possession financing and indications were that as of July 23, Amp'd would have a cash balance of $9,000. Meanwhile, Amp'd has been running up a Verizon bill to the tune of about $370,000 a day. Amp'd have started negotiations with its secured lender, Kings Road Investment, for debtor-in-possession financing, but things haven’t worked out. So the company now wants to participate in a court-supervised auction process. |  |
Since the bankruptcy proceedings started, Amp'd have received inquiries from potential purchasers about its assets, the filing says. Everything from studio equipment to copyrighted "Lil'l Bush" content is listed on an exhibit of assets.
Per Amp'd Mobile website Q&A:
- Amp'd is potentially suspending US operations on July 24th.
- Customer Service will not be available after July 23rd.
- Amp'd is currently in discussions with several parties.
- Customers can take their phone to another carrier if they use CDMA.
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