MobiTV Files Voluntary Chapter 11 To Effectuate Value-Maximizing Deal

MobiTV Files Voluntary Chapter 11 To Effectuate Value-Maximizing Deal EMERYVILLE, Calif., March 1: MobiTV, Inc. (MobiTV) revealed that the Company, together with its ancillary, has voluntarily filed for relief under chapter 11 of the Bankruptcy Code in the U.S. Bankruptcy Court for the District of Delaware. MobiTV desires to utilize these proceedings to execute a restructuring procedure which will position the Company's functioning platforms for long-term sustainability and expansion. The Company is committed to functioning with its lenders and stakeholders towards a fast and successful resolution of the case. MobiTV has received a commitment for a $15.5 million debtor-in-possession ("DIP") financing facility that will support the Company for the duration of the restructuring process, providing MobiTV with the financial runway and flexibility to execute on a value-maximizing solution, which may include a going-concern sale under section 363 of the Bankruptcy Code. The new facility, which is subject to Court approval, will enable the Company to continue to operate the business and meet its financial obligations, including the timely payment of employee wages and benefits, continued provision of service to existing platform customers, and payment of other obligations during the chapter 11 cases. After thoroughly evaluating all strategic alternatives, the Board of Directors unanimously agreed that pursuing a restructuring through a formal chapter 11 process is a necessary step forward for the business. FTI Consulting, Inc. and FTI Capital Advisors LLC have been retained as the Company's financial advisor and investment banker, subject to approval of the Court, to assist in negotiation of strategic options. Pachulski Stang Ziehl & Jones LLP and Fenwick & West LLP are serving as the Company's legal advisors.