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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

Amp’d Mobile Founder’s High-Flying Commute

Adderton Leaves Amp’d Mobile

Can Amp’d Mobile Survive?

Amp’d Mobile Files for Chapter 11 Protection

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