EMERYVILLE, Calif.—MobiTV may only be around for another month, as the company has officially warned the California Employment Development Department that it has put plans in place to cease operations on May 2, if needed. The San Jose Mercury News (opens in new tab) first reported the news, which they obtained from the EDD.
MobiTV, a video tech company that helps downsize traditional pay-TV operators to app-based services, officially filed for chapter 11 bankruptcy protection in March. It’s biggest customer, T-Mobile, provided it a $15.5 million loan to support the company.
Chapter 11 is designed to give the company the ability to reorganize its finance and debts, however in the event that it cannot, MobiTV has outlined plans to permanently layoff its 86 employees.
The company’s executives have told partners that they intend to stay in business. A company spokeperson gave TV Tech the following statement:
“In early March, MobiTV was required through the Worker Adjustment and Retraining Notification (WARN) Act to provide all employees with conditional notice of the possibility for employee termination if the Company’s restructuring efforts are unsuccessful. At this time, MobiTV is not planning to cease operations, and we are continuing to operate uninterrupted throughout the Chapter 11 process, with the focus of securing new ownership or investment to emerge as a stronger Company positioned for long-term service and sustainable growth for years to come.”
MobiTV had total assets of $19 million and total liabilities of $75 million at the time of its bankruptcy filing, according to a court record statement from Terri Stevens, the chief financial officer at MobiTV. The company generated $13.5 million in revenue in 2020, but had an operating loss of $34 million.
T-Mobile mentioned MobiTV and its loan as a contributing factor in why it shut down its TVision service (opens in new tab).
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