Ampd Users May Be Disconnected
|
Richard Baguley Published on July 19, 2007 Comment on this |
|
|
|
|
19th July 2007 - Verizon is threatening to disconnect the bankrupt reseller Amp'd, a set of newly released court documents claim. The documents (which are reported by AP here) claim that Amp'd has been burning through cash since it declared bankruptcy, and that there is no way it will be able to pay Verizon what it owes. Verizon claims that the Amp'd will have just $9,000 of cash left on monday. And now Verizon wants to disconnect the company, leaving their subscribers without service. The AP report quotes Verizon (who supply the cell phone calling and data services that Amp'd subscribers use) as saying in a new court filing that "The reality is that the debtor (Amp'd) has no funds with which to pay Verizon Wireless absent a 'real' debtor-in-possession loan or an infusion of equity _ neither of which has been made available". What this means is that Verizon doesn't think that Amp'd has any chance of paying its bills unless it raises money by getting a loan that gives away part of the company or by other means, and they haven't done either. So, Verizon is asking the court for permission to disconnect the network so that Amp'd can't rack up any more bills. Previously, the company had been told by the court to keep Ampd's subscribers connected while the company tried to reorganize under chapter 11 bankruptcy, but it looks like they are sick of waiting. The AP report claims that Amp'd users are currently using about $370,000 worth of services a day, and that Verizon thinks that Amp'd simply doesn't have the money to pay their bills.
The Verizon filing blasts the management of Amp'd, saying that "it is the court's responsibility to protect creditors' interests from the actions of inexperienced, incapable or foolhardy management". Looks like Verizon are getting serious; we'll report further when the court makes it decision.
|
|
|