Mobilicity seeks CCAA protection to pursue restructuring alternatives

By Jim Witters

Wilmington, Del., Sept. 30 - Data & Audio-Visual Enterprises Holdings Inc. and its affiliates - known as Mobilicity - received an initial order of protection under the Canadian Companies' Creditors Arrangement Act in the Ontario Superior Court of Justice, according to a Sept. 30 company press release.

The court also approved $30 million in debtor-in-possession financing from some of Mobilicity's existing noteholders.

"CCAA protection will allow Mobilicity the necessary time and financing to advance and complete a going-concern transaction, which is before Industry Canada for its review and approval. Mobilicity believes that the proposed transaction is in the best interests of its stakeholders and hopes to advance the transaction in the near term," the release said.

Ernst & Young Inc. has been appointed as monitor by the court to assist the company and its stakeholders.

Mobilicity continues to operate its business, and the company's service to customers should be unaffected, the company said.

Mobilicity is a Canadian mobile carrier. Its CCCA case number is CV-13-10274-00CL.

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