Judge lets Amp'd tap $7.5 million loan
Bankrupt Amp'd Mobile has received an ever-so-brief stay of execution this week, thanks in no small part to the federal court system. The US Bankruptcy Court in Delaware has ruled that the MVNO has permission to use $7.5 million in cash from its largest creditor (and underlying service provider) Verizon, a sum Verizon was ultimately hoping to avoid paying out. $2.45 million of that loan will be need be held in reserve, but the remainder should be enough to keep Amp'd up and running until June 25. What'll become of the carrier after Monday, though, remains to be seen, pending the result of a lawsuit asking the court to prevent Verizon from shutting off its service altogether.[Via mocoNews]
Filed under: Verizon Wireless, MVNOs
Reader Comments (Page 1 of 1)
daedalus @ Jun 21st 2007 1:10PM
ok... so Amp'd owes Verizon money... so Verizon loans them more money... I'm not sure how that's supposed to help anything... at all...
I sure hope that if Amp'd goes under, other carriers will jump at the opportunity to snag new subscribers...
Did you get screw'd? Come to us!
Mike @ Jun 21st 2007 1:54PM
I hope Amp'd doesn't go under. They're crazy popular at my Best Buy store.
Russell @ Jun 22nd 2007 4:13PM
Why the hell did verizon have to give them money ordered by the court total bullshit.
Verizon should cut off ampd subscribers or say hi your now with verizon for 2 years.