Small Canadian wireless operator Mobilicity has pushed back a debtholder vote on a recapitalisation plan to improve the operator’s balance sheet that was scheduled for today.
It is the second time the telco has delayed the meeting.
The operator,…
Small Canadian wireless operator Mobilicity has pushed back a debtholder vote on a recapitalisation plan to improve the operator’s balance sheet that was scheduled for today.
It is the second time the telco has delayed the meeting.
The operator, legally known as Data & Audio-Visual Enterprises Holdings, was set to be acquired by Telus earlier this year. The large operator was after Mobilicity’s spectrum, but the government said the frequencies could not be transferred due to competition fears. The authorities have subsequently presented a new policy on spectrum licence transfers that limit Mobilicity’s sale options.
In financial difficulty, Mobilicity subsequently decided to pursue a recapitalisation plan. That was set to be voted on 25 June. This got pushed back to 3 July so that creditors could see the government’s new spectrum policy.
Stewart Lyons, Mobilicity president and COO, has said the latest delay is to allow the challenger to “consider additional potential alternatives for the company and its stakeholders, including customers, dealers and employees”.
The vote will now take place next Wednesday, 10 July.
