Change at the top for Mobilicity as debt protection order is extended even further

by Andrew Roach on October 25, 2013

Mobilicity have fallen far from the public eye in the last couple of weeks as the struggling network provider looks to try and sort out its deep financial issues and handle a possible takeover bid. ‘

However, the company have returned to the spotlight this week with the news that their current president Stewart Lyons will be leaving the company in the near future.

Lyons’ departure will temporarily see CCO Anthony Booth take over the role until the company finds a suitable candidate to fill the spot.

The news comes just as the company have their credit protection order extended a further two months to December 6 after the initial order was set to expire on Wednesday.

Lyons decision to step down will no doubt be seen as an important marker in Mobilicity’s future as news of a possible takeover continues to float around.

Although the company planning the takeover has yet to be revealed, Telus are the company thought to be behind the
mystery bid as they try to buy Mobilicity for the second time.

With negotiations between Mobilicity and their potential buyer still ongoing, the company had sought to extend their debt protection order while the negotiations are taking place

The order has indeed been extended by an extra 5 weeks and will give creditors and the carrier much needed re-assurance about their finances at least until the end of the year.

Mobilicity’s spiralling debts have been one of the firm’s biggest problems with creditors thought to be owed around $7.5 million although legal financial monitors Ernst & Young estimated the value at $20 million.

If Telus are the firm bidding for Mobilcity, it will be interesting to see how the Ontario provider’s finances could come into play following Telus’ recent buyout of Public Mobile.

Public Mobile was much in the same position as what Mobilicity were a couple of months ago and Telus might deem a move for the company unnecessary if they indeed were thinking about another takeover bid.

By getting their debt protection order extended, it secures Mobilicity’s future for the next couple of months but with takeover talks still where they were at the start of the month, the carrier knows that time is running out for a deal to be struck.

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Written by: Andrew Roach www.digitcom.ca. Follow TheTelecomBlog.com by: RSS, Twitter, Facebook, or YouTube

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