Video streaming company MobiTV Inc. filed for bankruptcy protection, and plans to look for a buyer while staying afloat with a $15.5 million loan from T-Mobile US Inc., WSJ Pro Bankruptcy reported. The Emeryville, Calif.-based software company entered chapter 11 proceedings in the U.S. Bankruptcy Court in Wilmington, Del., with total assets of $19 million and liabilities of $75 million. The company’s roughly $25 million in secured debt is owed mostly to Ally Financial Inc., but T-Mobile also became a secured lender in recent months, providing MobiTV with roughly $5 million in bridge financing, according to court documents filed yesterday. MobiTV’s unsecured debts include about $9 million owed to bondholders, $15 million to trade creditors and $3 million under the federal Paycheck Protection Program. Major shareholders include Oak Investment Partners, which owns 44% of the common stock. Smaller equity owners include Hearst Communications Inc. and the U.S. Small Business Administration, records showed. As recently as 2019, MobiTV received $50 million in new funding from backers including Oak. MobiTV holds key contracts with T-Mobile and more than 120 cable and broadband TV providers to deliver streaming content to more than 300,000 subscribers.
