Ampd Mobile Files for Bankruptcy Protection
The USA based MVNO, Amp'd Mobile says that it has filed for Chapter 11 bankruptcy protection as it tries to restructure the business. The company says that it has had to carry out the restructuring due to fast growth which its back-end infrastructure has not been able to manage.
During the reorganization process, the directors say that they are working with one of Amp'd Mobile's largest investors (unnamed) to obtain debtor-in-possession financing.
Amp'd Mobile is reported to have close to 200,000 subscribers and has spent considerable sums on advertising. Late last year the company said that it was adding around 20,000 new subscribers per month.
According to the court statement, Amp'd currently owes $33 million to Verizon Wireless, $16 million to Motorola and $10 million to Vivendi. Total outstanding debt to their top 20 creditors exceeds US$99.6 million. "
Posted to the site on 4th June 2007