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Amp’d Mobile files for Chapter 11

Mobile virtual network operator Amp’d Mobile quietly filed for Chapter 11 bankruptcy protection late Friday night, announcing the move on its website. The Chapter 11 filing follows weeks of rumors concerning the fate of founder and CEO Peter Adderton, who reportedly exited the company following a rift with directors; Amp’d said in a statement issued over the weekend that its “senior management team remains largely intact.”

Despite more than $360 million in venture capital financing and subscriber totals closing in on the 200,000 mark, Amp’d is over $100 million in debt, owing $33 million to Verizon Wireless for network operations and $16.4 million to Motorola for handsets. The Chapter 11 petition, filed in U.S. Bankruptcy Court in Delaware, is likely to erase that debt, but will also wipe out ownership stakes and preferred stock held by investors and content partners like MTV and Universal Music.

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June 5, 2007 - Posted by | News

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