Amp'd seeks debt protection
EmptyMobile entertainment company Amp'd has declared bankruptcy but will remain in business.
The content-focused MVNO filed for Chapter 11 on Friday, citing $100 million in debt to many of the companies that have financed the venture, including Verizon Wireless, Motorola, Best Buy and Vivendi Universal.
"As a result of our rapid growth, our backend infrastructure was unable to keep up with customer demand," an Amp'd spokesman said in a statement released Saturday. "We are taking this step as a necessary and responsible action to sustain and strengthen our momentum in the marketplace."
In its two years in business, Amp'd made a name for itself in the mobile space by investing heavily in content. Contributors to its 23 video channels and 14 stations included MTV and Fox Sports, as well as original programming from partners Bunim Murray Prods., Quincy Jones' QD3 Prods. and LivePlanet.
Amp'd said it is seeking "debtor-in-possession" financing from one of its primary investors but declined to specify which company. The senior management team is expected to stay "largely intact," according to the statement.