California-based MobiTV, known for its live and on-demand TV services, has voluntarily entered Chapter 11 bankruptcy reconstruction. MobiTV is a wireless delivery supplier for many US telcos including T-Mobile.
MobiTV says it will continue to operate and to serve its customers and has secured $15.5 million of fresh (Debtor in Possession) funding in order to continue operating. However, its Section 363 bankruptcy (within Chapter 11) could end up with the company having to sell off many of its assets.
MobiTV claims it delivers services to more than 120 clients delivering material to over 300,000 subscribers.
CEO Charlie Nooney wrote to clients, saying: “Please be assured that this action does NOT mean the Company is going out of business. We will continue to provide live and on-demand video solutions to our customers and will continue to review our services through the case proceedings. In connection with the Chapter 11 filing, the Company has secured important bridge funding commitments which will allow MobiTV to continue business as usual operations during the pendency of the proceeding.”
Nooney added that he hoped the Chapter 11 reconstruction could be completed by the second-quarter of this year.