Amp’d Mobile Settles with Verizon Wireless
7/5/07 – A bankruptcy judge has approved a deal that will allow Los Angeles-based Amp’d Mobile to pay $2.5 million to Verizon Wireless to continue using Verizon’s network to provide cellular phone service while it reorganizes under chapter 11 protection.
Amp’d, a mobile virtual network operator, or MVNO, buys wholesale network service from Verizon and offers value-added service on top of the basic phone service.
Under the deal, the $2.5 million payment will be used to pay down a portion of Amp’d’s existing debt to Verizon. The wireless giant has billed the company $10.6 million just for June, according to published reports.
In return for the payment, Amp’d will be able to continue to use Verizon’s network. Amp’d will also drop a lawsuit it filed against Verizon to prevent it from kicking Amp’d off its network.
Amp’d’s bankruptcy has been a controversial topic, as the company had raised more than $360 million in capital—the most of any recent startup in Southern California—and numerous reports have surfaced since its bankruptcy filing of rampant overspending and faulty collection practices.
Amp’d Mobile – www.ampdmobile.com
Other stories about the Amp’d Mobile bankruptcy:
Amp’d Mobile’s Lifeline Extended
