Verizon Wireless told the court handling MVNO Amp'd Mobile's bankruptcy case that it wants to disconnect Amp'd from its EV-DO network. In court papers filed in the case, Verizon Wireless said Amp'd has been burning through cash since filing for bankruptcy in June, compounding expenses of $370,000 a day to Verizon alone.
"Based on the record of this case and the fact that (Amp'd) has been given ample opportunity (over 46 days) to secure debtor-in-possession financing which has not materialized, this court should not permit this case to be run for a single additional day on Verizon Wireless' back," Verizon Wireless said in papers filed with the court.
Since filing for bankruptcy, Amp'd has racked up $15.6 million in charges for use of the Verizon Wireless network. That's in addition to the $41 million Amp'd owed the company before filing for bankruptcy. Amp'd Mobile will have just $9,000 in cash as of next Monday, Verizon Wireless said. Earlier this month Judge Brendan Linehan Shannon of the U.S. Bankruptcy Court in Wilmington, Delaware signed off on a deal to keep Amp'd operating over the Verizon Wireless network during Chapter 11 reorganization by paying Verizon Wireless $2.5 million. Now Verizon Wireless says Amp'd is unlikely to get the financing it needs to keep going.
To read more about Verizon Wireless' frustration with Amp'd Mobile:
- check out this article from Forbes