According to FTI Consulting, a firm brought on by the Emeryville, Calif. company to oversee the restructuring process, MobiTV has obtained $15.5 million in debtor-in-possession financing to keep the lights on, the employees paid and its cloud-based video systems up and running.
FTI didn't specify who the lender is. But according to the Wall Street Journal, it's T-Mobile, MobiTV's biggest client.
FTI said the restructuring is intended to address MobiTV’s debt obligations so that it can be sold.
The company was founded 1999 and has secured $213.8 million in private funding to date.
MobiTV markets Connect, a cloud-based platform that enables pay TV operators to turn their video services into app-based solutions playable on popular connected TV devices. According to the company’s bankruptcy petition, it currently has 125 customers.
MobiTV lists total assets of $19 million and liabilities of $75 million in its Wilmington, Delaware filing.
MobiTV’s technology helps power T-Mobile’s TVision, the virtual MVPD launched by the wireless company back in November. Notably, T-Mobile’s top executives didn’t mention TVision once during the company’s fourth-quarter earnings call in in early February, just over three months following the big TVision launch. MobiTV’s revenue is reportedly structured on the customer uptake of the platforms it furnishes to its pay TV clients.
Cable One, meanwhile, is in the process of rolling out Sparklight TV, which is based on MobiTV tech.
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Daniel Frankel is the managing editor of Next TV, an internet publishing vertical focused on the business of video streaming. A Los Angeles-based writer and editor who has covered the media and technology industries for more than two decades, Daniel has worked on staff for publications including E! Online, Electronic Media, Mediaweek, Variety, paidContent and GigaOm. You can start living a healthier life with greater wealth and prosperity by following Daniel on Twitter today!