Mobilicity Granted Stay Extension to June 30, 2014
TORONTO, April 25, 2014 /CNW/ - Data & Audio Visual Enterprises Holdings Inc. and its affiliates (collectively, Mobilicity) announced that on April 23, 2014 it obtained an order from the Ontario Superior Court of Justice (Commercial List) (the Court) granting a stay extension under its current CCAA proceedings to June 30, 2014. The scheduling of the meeting order and the sanction order in respect of Mobilicity's CCAA plan transaction (the Mobilicity Transaction), announced April 17, 2014, will be scheduled at a later date. Copies of the order of the Court, and of the Monitor's Sixth Report dated April 22, 2014, are available on the Monitor's website at www.ey.com/ca/mobilicity.
The Court has also ordered, on April 23, 2014, that the parties involved in the Mobilicity Transaction shall attend a mediation to mediate any outstanding issues relating to the successful completion of the Mobilicity Transaction. On April 24, 2014, Industry Canada confirmed that to the extent there remains outstanding issues related to the completion of the Mobilicity Transaction, it will participate with Mobilicity and its key stakeholders in the Court-ordered mediation. If needed, Mobilicity expects that mediation would proceed over the next few weeks. The mediation is to proceed before the Honourable Former Chief Justice of Ontario Warren Winkler.
Former Chief Justice of Ontario Winkler, B.A., LL.B., LL.M was appointed Chief Justice of Ontario in June 2007, following 14 years as a trial judge of the Superior Court of Justice of Ontario. The Honourable Warren Winkler retired as the Chief Justice of Ontario in December 2013. During his service with the Superior Court of Justice, Chief Justice Winkler held a range of judicial administration portfolios. He has judicially mediated many large national and international disputes, including: Air Canada Restructuring; Walkerton Tainted Water; Ontario Hydro and Power Workers; Windsor-Michigan Tunnel; CanWest/Shaw Cable restructuring and Nortel Networks. He has heard major class action proceedings involving: Hepatitis C; Breast Implants; Tobacco; Walkerton Tainted Water; Mad Cow Disease and Native Residential Schools.
The Mobilicity Transaction is supported by Mobilicity's key stakeholders, including customers, employees, dealers and other stakeholders, as it provides for a complete continuation of the business to their benefit. Mobilicity expects to complete the transaction, subject to the successful meeting of creditors to consider the Mobilicity Transaction, the sanctioning by the Court of Mobilicity's CCAA plan and the approval of Industry Canada or approval within the CCAA proceedings of the transfer of Mobilicity's spectrum licences as part of the Mobilicity Transaction.
On April 1, 2014, Mobilicity filed a confidential preliminary assessment request with Industry Canada in respect of the Mobilicity Transaction. Industry Canada advised Mobilicity that it does not have a specific date on its response to Mobilicity but the review by Industry Canada is a priority and is well underway. The Industry Canada preliminary assessment process allows a holder of spectrum licences to seek non-binding advice from Industry Canada on a confidential basis. Mobilicity is of the view there will be no need for the Court-ordered mediation if there are no outstanding issues remaining for the successful completion of the Mobilicity Transaction.
Mobilicity will continue to provide updates on its restructuring and the Mobilicity Transaction as matters advance.
About Mobilicity (DAVE Wireless):
Mobilicity, Canada's smart mobile carrier, was created to bring down the cost of wireless with unlimited talk, text and data plans, affordable North American coverage, plus popular handsets and smartphones –without locking customers into contracts or charging extra or hidden fees.
Mobilicity was formerly known as Data & Audio-Visual Enterprises Wireless Inc. (DAVE Wireless). Further information about Mobilicity can be found at www.mobilicity.ca.
SOURCE MobilicityFor further information: Media Inquiries: Longview Communications: Joel Shaffer, 416-649-8006; Nick Anstett, 416-649-8008