MobiTV, an app-based platform provider for pay TV services, has voluntarily filed for relief under chapter 11 of the Bankruptcy Code in the U.S. Bankruptcy Court for the District of Delaware.
MobiTV will use the proceedings to implement a restructuring process which it said will better position its operating platforms for long-term sustainability and growth. The company has received a commitment for a $15.5 million debtor-in-possession financing facility that will support it during the restructuring process, which may include a going-concern sale under section 363 of the Bankruptcy Code.
MobiTV said the bridge funding will allow it to continue operating the business, including the payment of employee wages and benefits, continued provision of service to existing platform customers, and payment of other obligations during the chapter 11 cases.
RELATED: MobiTV and Amino team for updated set-top boxes
“After thoroughly evaluating all strategic alternatives, the Board of Directors unanimously agreed that pursuing a restructuring through a formal chapter 11 process is a necessary step forward for the business,” the company said in a news release.
In a letter to MobiTV’s partners, CEO Charlie Nooney assured that the bankruptcy process does not mean that his company is going out of business. He said MobiTV expects to complete the restructuring process in the second quarter of 2021.
“We recognize that our customers are MobiTV’s most valuable asset. While the Company is reorganizing, our executive team and employees will be managing our business professionally and with the drive and enthusiasm for excellence that we have always demonstrated. We will continue to focus on providing excellent and uninterrupted service,” wrote Nooney.
MobiTV Connect, the company’s software-as-as-service platform, has been tapped by operators including Cable One and MCTV to launch app-based streaming TV services. The company said that Connect has been picked by more than 90 operators since first launching 2016.