Court grants Mobilicity creditor protection until September 26th

The Ontario Superior Court of Justice has once again granted Mobilicity, legally known as Data & Audio-Visual Enterprises Holdings Inc., creditor protection, until September 26th.

According to the latest court documents, Mobilicity noted that its “Cash Flow Statement projects that the Applicants will have sufficient liquidity to operate, and to fund the costs of this Proceeding, to September 26, 2014.” Digging down into the numbers — page 6, paragraph 17 — states that “during the Cash Flow Period the Applicants will have total receipts from operations of approximately $16.7 million and total disbursements of approximately $20.5 million, resulting in a projected net cash outflow from operations of $3.8 million.”

As stated yesterday, Mobilicity has approximately 155,000 active subscribers, down 2,000 subs from June 16th. In addition, there are currently 41 full-time employees and one part-time employee at Mobilicity, and revealed job losses of “24 employees whose services were no longer required.”

Mobilicity might score additional subscribers as they have a $25/month promo that gives unlimited talk, text and data “for life,” which basically means until your account remains active on its automatic monthly payment option.

Source: CWN
Via: EY