Mobilicity CCAA stay extended; court orders plan transaction mediation

By Caroline Salls

Pittsburgh, April 25 - Data & Audio Visual Enterprises Holdings Inc. and its affiliates (collectively, Mobilicity) obtained an extension of its Companies' Creditors Arrangement Act stay to June 30, according to a news release.

The company said the scheduling of a meeting order and plan transaction sanction order will be scheduled at a later date.

Mobilicity said the Ontario Superior Court of Justice also ordered plan transaction parties to mediate outstanding issues related to the successful completion of the transaction.

Industry Canada confirmed that it would participate with Mobilicity and its key stakeholders in the court-ordered mediation to the extent that outstanding issues remain.

If needed, Mobilicity said it expects that mediation would proceed over the next few weeks before former Chief Justice of Ontario Warren Winkler.

According to the release, the Mobilicity transaction is supported by its key stakeholders, including customers, employees, dealers and other stakeholders, as it provides for a complete continuation of the business to their benefit.

Completion of the transaction is subject to creditor approval, the sanctioning by the court of Mobilicity's CCAA plan and the approval of Industry Canada or approval of the transfer of Mobilicity's spectrum licenses.

On April 1, Mobilicity filed a confidential preliminary assessment request with Industry Canada in connection with the transaction. Industry Canada advised Mobilicity that it does not have a specific date for its response to Mobilicity, but that the review of the request is a priority and is well underway.

The company said the Industry Canada preliminary assessment process allows a holder of spectrum licenses to seek non-binding advice from Industry Canada on a confidential basis.

Mobilicity said it feels there will be no need for the court-ordered mediation if there are no outstanding issues remaining for the successful completion of the transaction.

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

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