Yahoo News is reporting that Amp’d Mobile, still struggling under the court’s Chapter 11 bankruptcy protection, has managed to secure another $7.5 million in cash from it’s largest investor, Verizon Wireless. Judge Brendan Shannon of the Delaware US Bankruptcy Court gave the embattled MVNO permission to use Verizon’s cash collateral (cash, stocks, bonds, etc.) until June 25 – effectively keeping Amp’d Mobile on life support for another week or so.
Judge Shannon also ordered Amp’d Mobile to earmark $2.45 million of the $7.5 million to be set aside as reserve – to be used only with Verizon’s written approval. Amp’d Mobile owes Verizon Wireless, its largest creditor, about $33 million.
It’s interesting that Verizon Wireless agreed to let Amp’d use its cash in the midst of the two companies’ feud over whether Verizon can kick Amp’d off its network. Despite worries that Amp’d would simply use the collateral cash to fund the legal battle regarding the network lease, Verizon Wireless decided to let the belly-up MVNO struggle for a little longer. Maybe Verizon thinks Amp’d Mobile can do something with barely a weeks worth of cash to get themselves back on their feet? Possible, but not probable.
[Via: Yahoo News]