Data & Audio-Visual Enterprises Holdings Inc. and its affiliates (collectively, Mobilicity) announced today that it applied for and received protection under the Companies' Creditors Arrangement Act (Canada) ("CCAA"), an order (the "Initial Order") from the Ontario Superior Court of Justice (the "Court"). CCAA protection will allow Mobilicity the necessary time and financing to advance and complete a going-concern transaction, which is before Industry Canada for its review and approval. Mobilicity believes that the proposed transaction is in the best interests of its stakeholders and hopes to advance the transaction in the near term.
It is business as usual for Mobilicity's wireless customers. There are no changes to Mobilicity's network and Mobilicity continues to honour prepayment plans for its customers. Phone service continues to work as it always has and Mobilicity's dealer network is open for business.
Pursuant to the Initial Order, Ernst & Young Inc. has been appointed as Monitor by the Court to assist the Company and its stakeholders. The Court also approved Mobilicity's debtor-in-possession ("DIP") financing from some of its existing noteholders, in a maximum amount of $30 million. Mobilicity continues to operate its business in the normal course and will provide updates on its progress as matters advance.
