The Globe and Mail reports in its Thursday edition a Toronto judge has approved a new round of debt financing for Mobilicity that will allow it to register to bid in an upcoming auction of wireless air waves.
The Globe's Christine Dobby writes that deposits for the auction are due on Friday. The move sets the company up to compete with fellow start-up Wind Mobile for airwaves reserved for new entrants already operating in Ontario, British Columbia and Alberta.
Mobilicity, which has been under creditor protection since September, 2013, reached an agreement to enter into a second debtor-in-possession (DIP) financing for $65-million from some of its debt holders, which was approved Wednesday morning.
The agreement is structured off an earlier DIP financing for $30-million. The feds structured the auction of spectrum in the AWS-3 (advanced wireless services) frequency band to reserve 60 per cent of the airwaves for companies already providing wireless services with less than 10 per cent of national market share and less than 20 per cent of market share by region.
Mobilicity and Wind are the only two players that appear to qualify to bid on those set-aside licences in Ontario, British Columbia and Alberta.
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