TORONTO – Struggling Mobilicity has received another extension to its creditor protection.
After filing materials earlier this week with the Ontario Superior Court of Justice, the wireless carrier confirmed Wednesday that it has received a further extension under its current CCAA proceedings from June 30 to September 26, 2014. It was initially granted creditor protection last September.
Mobilicity added that it’s previously announced mediation is ongoing and it "continues to be business as usual” for customers.
All things considered, the company is hanging on, with 157,000 customers as of June 16th, according to the Monitor's Report, and "that management expects this number to decline to approximately 155,000 by the end of June."
The company now has just 41 employees, after letting go an additional 24 this month, added the report.
This stay will give other potential suitors the opportunity to pursue an acquisition of the company, since most of its efforts towards a sale were concentrated on Telus, which officially withdrew its $350 million offer last month. Most now expect Quebecor will offer to buy Mobilicity, given its CEO's statements last week.
