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Client Work

Mobilicity acquired by Rogers

Fasken
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Overview

Client

Confidential Client

On July 2, 2015, Mobilicity announced its sale to Rogers Communications Inc. in a transaction valued at C$465 million. As well, the transaction resulted in the compromise of $600 million of debt claims and $250 million of equity claims. Mobilicity commenced creditor protection proceedings under the Companies’ Creditors Arrangement Act in September 2013 after having previously unsuccessfully sought to restructure its debt or achieve a sale via a plan of arrangement under the Canada Business Corporations Act. This transaction offered significant value to Mobilicity’s creditors and allowed Mobilicity to emerge from creditor protection as a going concern. The transaction also ensured certainty of service for Mobilicity customers on the Rogers network and resulted in Rogers gaining significant spectrum capacity in new markets. Mobilicity, formerly known as Data & Audio-Visual Enterprises Wireless Inc., is a Canadian wireless telecommunications carrier which provides affordable North American coverage. Fasken Martineau acted for Catalyst Capital Group Inc., the largest creditor of Mobilicity, throughout the Canada Business Corporations Act and Companies’ Creditors Arrangement Act proceedings with a team that included Jon Levin, Stephen Acker, John Elias, Yael Wexler and Laura Fetter.

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