MobiTV, a pay TV software provider, is scheduled to have its assets auctioned off this week after earlier this year declaring bankruptcy.
According to a notice filed this week with the U.S. Bankruptcy Court for the District of Delaware, qualified bids for MobiTV were due May 7 and, since the company received multiple offers, an auction has been scheduled for May 11.
One of those offers came from Amino, a U.K.-based pay TV software and hardware provider. The company notified its investors of the potential acquisition, which it said would immediately establish a TVaaS infrastructure capability in the U.S. for Amino. The company warned that it would require significant investment over a six to 12-month period to develop organically.
Amino said that the acquisition of MobiTV must close by the end of May 2021.
In March, MobiTV voluntarily filed for bankruptcy and that that it would use the proceedings to implement a restructuring process which it said will better position its operating platforms for long-term sustainability and growth. The company has received a commitment for a $15.5 million debtor-in-possession financing facility that will support it during the restructuring process, which may include a going-concern sale under section 363 of the Bankruptcy Code.
In a letter to MobiTV’s partners, CEO Charlie Nooney assured that the bankruptcy process does not mean that his company is going out of business. He said MobiTV expects to complete the restructuring process in the second quarter of 2021.
“We recognize that our customers are MobiTV’s most valuable asset. While the Company is reorganizing, our executive team and employees will be managing our business professionally and with the drive and enthusiasm for excellence that we have always demonstrated. We will continue to focus on providing excellent and uninterrupted service,” wrote Nooney.
MobiTV customers include T-Mobile, MCTV and Cable One, which in late march began to roll out its new Sparklight TV product, which runs atop the MobiTV Connect platform.