By Monica Alleven
Friday, July 20, 2007
It looks as though Amp'd Mobile, or its parts, are going up for sale. In a filing today with the U.S. Bankruptcy Court for the District of Delaware, the company is seeking, on an expedited basis, to establish bidding procedures in connection with the sale of some or all of its assets.
The move comes after Verizon Wireless on Tuesday filed a motion seeking permission to immediately disconnect service and terminate its wholesale agreement with Amp'd. In its filing, Verizon said after 46 days into the case, Amp'd had yet to obtain debtor-in-possession financing and indications were that as of July 23, Amp'd would have a cash balance of $9,000. Meanwhile, Amp'd has been running up a Verizon bill to the tune of about $370,000 a day.
Today's filing says Amp'd had engaged in negotiations with its secured lender, Kings Road Investment, for debtor-in-possession financing, but that didn't pan out. So the company now wants to participate in a court-supervised auction process.
Since the bankruptcy proceedings started, Amp'd has received inquiries from potential purchasers about its assets, the filing says.
Everything from studio equipment to copyrighted "Lil'l Bush" content is listed on an exhibit of assets.
An Amp'd spokeswoman declined comment. A hearing is scheduled Monday morning on the case. Amp'd filed for Chapter 11 bankruptcy protection back on June 1.