Indebted Canadian operator Mobilicity has been granted court approval to try and force through the sale of its spectrum licences as it looks to appease its creditors.
Earlier this month Mobilicity requested that the Ontario Superior Court of Justice…
Indebted Canadian operator Mobilicity has been granted court approval to try and force through the sale of its spectrum licences as it looks to appease its creditors.
Earlier this month Mobilicity requested that the Ontario Superior Court of Justice consider section 11.3 in the Companies’ Creditors Arrangement Act (CCAA) in relation to the sale of its frequencies.
A judge has now given the operator two weeks to present a motion based upon the CCAA legislation to interested parties, including the industry ministry.
The act could allow Mobilicity to circumvent the government’s Spectrum License Transfer Framework (SLTF), introduced last year, which is designed to stop the three largest mobile operators – Bell Canada, Rogers Wireless and Telus – from acquiring more frequencies from rivals.
However, local reports have suggested that the courts may be reluctant to use the CCAA to overrule government policy.
Industry Canada has previously blocked Mobilicity from selling its spectrum to Telus and the proposed transaction proved to be the catalyst for the introduction of the SLTF.
Telus offered C$380m for the licences. The only other bid reported came from Wind Mobile, which was said to have only proposed around half that amount.
Mobilicity went into creditor protection in early autumn due to mounting debts and its failure to sell its frequencies. It has received extensions to the duration of its protection multiple times.
The creditor protection is now due to expire on 18 February. EY is acting as the court-appointed monitor to assist the mobile operator and its stakeholders.
