MobiTV voluntarily filed for relief under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the District of Delaware. MobiTV intends to use these proceedings to implement a restructuring process.
In conjunction with the filing, MobiTV received a commitment for a $15.5 million debtor-in-possession financing facility that will support the company for the duration of the restructuring process, providing MobiTV with the financial runway and flexibility to execute on a value-maximizing solution, which may include a going-concern sale under section 363 of the Bankruptcy Code. The new facility, which is subject to court approval, is meant to enable MobiTV 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 case. The company’s board of directors unanimously approved the restructuring through a formal Chapter 11 process.
FTI Consulting and FTI Capital Advisors have been retained as MobiTV’s financial advisor and investment banker, respectively, subject to approval of the court, to assist in the negotiation of strategic options. Pachulski Stang Ziehl & Jones and Fenwick & West are serving as the company’s legal advisors.
