Verizon Wireless Threatens Amp’d Mobile Shutdown
7/19/07 – Another twist was added to the Amp’d Mobile bankruptcy saga yesterday, as Verizon Wireless filed a petition in Amp’d’s bankruptcy case to allow Verizon to stop providing access to its network. Earlier this month the court ruled that Amp’d could continue to have Verizon provide its network service during chapter 11 reorganization contingent upon a $2.5 million payment to the cellular operator. Prior to its bankruptcy filing, Amp’d owed Verizon approximately $41 million for network service.
Reports now say that Amp’d is still racking up huge bills since filing for bankruptcy, including $370,000-a-day just on Verizon’s network services. On top of that, one report surmised that based on court filings, Amp’d will have only $9,000 in the bank as of next week. Verizon Wireless is now asking for permission to pull the plug on Amp’d’s network unless it obtains a loan to finance its bankruptcy case and reorganization.
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.
Before its bankruptcy filing, Amp’d raised more than $360 million in capital—the most of any recent startup in Southern California.
Amp’d Mobile – www.ampdmobile.com
Other stories on the Amp’d Mobile bankruptcy:
Amp’d Mobile Settles with Verizon Wireless
Amp’d Mobile’s Lifeline Extended
