App-based pay TV video streaming platform MobiTV has voluntarily filed for bankruptcy, under chapter 11, in the US Bankruptcy Court for the District of Delaware. The company said it will use the proceedings to restructure, with a view towards long-term sustainability and growth.
The company, which said it wants to work with lenders and stakeholders to resolve its bankruptcy as quickly as possible, has received a commitment for a USD 15.5 million debtor-in-possession (DIP) financing facility that will support the company for the duration of the restructuring process, which may include a going-concern sale.
The new facility, subject to court approval, will also let the company continue to operate its business and meet its financial obligations, including the timely payment of employee wages and benefits.
