MobiTV files for chapter 11 | Major Businesses | Business | News | Rapid TV News
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Aiming to shore up its finances as it restructures, app-based TV video delivery solutions provider MobiTV and its subsidiaries have voluntarily filed for fiscal relief under chapter 11 of the Bankruptcy Code in the US Bankruptcy Court for the District of Delaware.
MOBITV General Localised 2march2021
After it said was a thorough process of evaluating all strategic alternatives, MobiTV’s board of directors unanimously decided that pursuing a restructuring through a formal chapter 11 process was a necessary step forward for the business. As part of the process, MobiTV has received a commitment for a $15.5 million debtor-in-possession (DIP) financing facility, subject to Court approval, that the company says will enable it to see out the duration of its restructuring process, providing a financial runway and flexibility to execute on what the company called a “value-maximising” solution, which may include a going-concern sale under section 363 of the Bankruptcy Code.

The new facility will also enable the company to continue to operate its business and meet its financial obligations, including the timely payment of employee wages and benefits, continued provision of service to existing platform customers, and payment of other obligations during the chapter 11 cases.

After embarking upon the chapter 11 process, MobiTV CEO said that the move did not threaten the business and that it would mean that it would emerge restructured in Q2 2021. “Our executive team and employees will be managing our business professionally and with the drive and enthusiasm for excellence that we have always demonstrated,” he remarked ins a statement to partners. “We will continue to focus on providing excellent and uninterrupted service.”

FTI Consulting and FTI Capital Advisors have been retained as the Company’s financial advisor and investment banker, subject to approval of the Court, to assist in negotiation of strategic options. Pachulski Stang Ziehl & Jones and Fenwick & West are serving as the Company’s legal advisors.