Verizon Wireless told the court handling MVNO Amp'd Mobile's bankruptcy case that it wants to disconnect Amp'd from its EV-DO network. In court papers filed in the case, Verizon Wireless said Amp'd has been burning through cash since filing for bankruptcy in June, compounding expenses of $370,000 a day to Verizon alone.
"Based on the record of this case and the fact that (Amp'd) has been given ample opportunity (over 46 days) to secure debtor-in-possession financing which has not materialized, this court should not permit this case to be run for a single additional day on Verizon Wireless' back," Verizon Wireless said in papers filed with the court.
Since filing for bankruptcy, Amp'd has racked up $15.6 million in charges for use of the Verizon Wireless network. That's in addition to the $41 million Amp'd owed the company before filing for bankruptcy. Amp'd Mobile will have just $9,000 in cash as of next Monday, Verizon Wireless said. Earlier this month Judge Brendan Linehan Shannon of the U.S. Bankruptcy Court in Wilmington, Delaware signed off on a deal to keep Amp'd operating over the Verizon Wireless network during Chapter 11 reorganization by paying Verizon Wireless $2.5 million [1]. Now Verizon Wireless says Amp'd is unlikely to get the financing it needs to keep going.
To read more about Verizon Wireless' frustration with Amp'd Mobile:
- check out this article [2] from Forbes
Related articles:
- Amp'd files for Chapter 11 bankruptcy [3]
Links:
[1] http://www.fiercemobilecontent.com/story/judge-green-lights-ampd-verizon-deal/2007-07-05
[2] http://www.forbes.com/feeds/ap/2007/07/18/ap3927429.html?partner=alerts
[3] http://www.fiercewireless.com/story/amp-d-files-for-chapter-11-protection/2007-06-04