Amp'd Mobile to Cease Operations, Sell Assets

Embattled mobile virtual network operator (MVNO) Amp'd Mobile, who previously filed for Chapter 11 bankruptcy on June 1 this year, has entered a filing to the US Bankruptcy Court for the District of Delaware seeking to establish bidding procedures to auction assess. Amp'd has exhausted options to secure debtor-in-possession financing, forcing it to close its doors and seek to sell off assets in order to pay off some of its mounting debt.

Earlier this week Verizon Wireless, the operator that provides the network services to Amp'd, petitioned the ruling judge to allow it to cease services to the MVNO, with Amp'd reportedly accumulating around US$370,000 per day in charges owed to Verizon over the 46 days the case has been in court. Indications are that Amp'd Mobile will have a cash balance of just US$9000 as of July 23.

A hearing for the case is scheduled for July 23, where details of the auctioning of assists are expected to be explored. [via Wireless Week]