Bankrupt Amp'd Mobile is notifying customers that their service will be cut off at midnight, July 24 after failing to secure debtor-in-possession financing. The 3G MVNO, which resells CDMA 1xEV-DO service from Verizon Wireless, said in a court filing that it will continue to search for buyers, but is likely to auction off the company's assets July 30.
The move comes after Verizon Wireless filed papers with the bankruptcy court arguing that Amp'd has had ample time to find debtor-in-possession financing. Verizon said the "court should not permit this case to be run for a single additional day on Verizon Wireless' back." 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 today.
- Verizon Wireless wants Amp'd off its 3G network
- Court approves plan calling for Amp'd to pay Verizon Wireless to stay operating