Judge OKs Amp'd bankruptcy deal

A bankruptcy judge approved service provider United Systems Access' purchase of ill-fated MVNO Amp'd Mobile. Judge Brendan L. Shannon of the U.S. Bankruptcy Court in Wilmington, Del. agreed to a deal calling for United Systems to pony up a combination of cash and stock in return for access to what remains of the Amp'd subscriber base--United Systems will offer [1] wireless service under its Prexar Mobile banner, with the total payment determined according to the number of Amp'd customers who migrate to Prexar and how long they remain with the company. Amp'd will also receive a 25 percent stake in Prexar.

While the value of the sale is presently unknown, the United Systems bid presumably beat out competition from Amp'd Mobile backer Kings Road Investments Ltd., an affiliate of hedge fund Polygon Investment Partners, which was reportedly authorized to credit-bid the $30 million it was owed by Amp'd before the MVNO filed for bankruptcy.

In related news, Viacom--the parent company of Amp'd backer MTV--reported its Q2 earnings, recording a $36 million pre-tax impairment charge to write off its Amp'd investment.

For more on the Amp'd purchase:
- read this Associated Press article [2]

Related Articles:
Amp'd Mobile [3] shutting down, selling assets
Verizon seeking to terminate Amp'd [4] service
The biggest losers from Amp'd [5]'s Chapter 11