Mobilicity wins approval of $465 million sale to Rogers Communications

By Caroline Salls

Pittsburgh, June 24 – Data & Audio-Visual Enterprises Holdings Inc. and its affiliates (collectively, Mobilicity) said the $465 million sale to Rogers Communications was approved by the Ontario Superior Court of Justice, according to a news release.

“I’m pleased that, following a robust sale and bidding process, we were able to agree on a purchase price to complete a going-concern sale that addresses the needs of a number of stakeholders,” Mobilicity chief restructuring officer William Aziz said in the release.

Under the sale, Mobilicity’s trade liabilities will continue to be dealt with in the ordinary course, all employees, dealers and other obligations will be assumed by Rogers Communications and services for subscribers will continue uninterrupted.

The transaction is subject to approval by Industry Canada and the Competition Bureau. Mobilicity said it intends to seek a vesting and distribution order on June 29.

According to the release, the purchase price will be applied to repay all of the outstanding first-lien and second-lien debt of Mobilicity, with the remainder being used to repay some remaining unsecured creditors.

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

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