Indebted Canadian cellco Mobilicity has secured the necessary CAD62 million (USD50 million) funding from debtholders to place a deposit by the end-January deadline for entering the upcoming AWS-3 wireless spectrum auction scheduled for 3 March. The Globe & Mail reports that Mobilicity placed an application before the Ontario Superior Court of Justice to approve the ‘second debtor-in-possession (DIP)’ financing arrangement, structured off an earlier CAD30 million DIP financing arrangement the company entered into when it first filed for protection under the Companies’ Creditors Arrangement Act. Mobilicity plans to form a wholly owned subsidiary called Mobilicity SpectrumCo for the sole purpose of participating in the AWS-3 auction, in which it may compete against Wind Mobile for leftover 1700MHz/2100MHz spectrum set aside for second-tier mobile operators. The company is waiting to receive court approval for its latest requested extension of creditor protection from 30 January to 8 May.
Thanks to TeleGeography for the article.