Amp’d Mobile to Liquidate

0

After holding an emergency auction, bankrupt wireless carrier Amp’d Mobile Inc. is seeking approval for ‘very discrete asset sales’ in a Wednesday, Aug. 1, hearing, according to a court schedule, TheDeal.com reports.


Prexar Mobile said in a statement Tuesday that it is buying unspecified ‘strategic wireless assets’ from Amp’d. Prexar is a division of United Systems Access Telecom Inc.’s USA Telephone unit. USA Telephone CEO Bill Fogg said the deal would guarantee continuity of service for Amp’d customers and provide ‘the same rewarding user experience,’ but would not say exactly what the company is buying or how much it is paying. The executive did say that Prexar is not buying Amp’d’s customer list. Amp’d’s pleadings have contained little information about the results of its auction, but the debtor’s counsel said Tuesday that the company is selling ‘limited assets.’


At least 26 parties have filed objections to the sale process, including Oracle Corp., Circuit City Stores Inc., Vivendi SA’s UMG Recordings Inc. and Vivendi Games Inc. units, Time Warner Inc.’s AOL LLC and Motorola Inc. Generally, the concerns have centered around the sale’s impact on their claims, liens and future contractual obligations to the company.


Los Angeles-based Amp’d is a so-called virtual network operator and resells the services of Verizon Wireless. Amp’d made ambitious attempts to blend mobile services with emerging media formats. The company’s venture capital backers included Intel Corp.’s venture arm, Viacom Inc.’s MTV Networks, Vivendi’s Universal Music Group and Qualcomm Inc.


A cash shortage created tensions with Verizon Wireless, however. The joint venture of New York-based Verizon Communications Inc. and Britain’s Vodafone Group plc has twice threatened to disconnect Amp’d from it’s networks. A July settlement provided that Verizon Wireless would keep the debtor in service through the end of the month.


Bids were due July 27. An auction was set for Monday and Tuesday. Verizon Wireless’ counsel could not be reached Tuesday to discuss its position on the auction results.


Read the full Deal.com story

.

No posts to display