Specifically why did Amp'd Mobile file for Chapter 11? They owed money to a few people:
Verizon Wireless: $33 million
Motorola: $16 million
Vivendi: $10 million
BestBuy: $8 million
MTV Networks: $1.8 million
When coupled with other debts, the bill runs to about $100 million, which is more than they have in assets. And we're not even bringing up a little something called the gratuity.
Amp'd's full release post jump.
OFFICIAL STATEMENT FROM AMP'D MOBILE
On June 1st, 2007, Amp'd Mobile Inc. filed for protection under Chapter 11 bankruptcy to restructure the business. As a result of our rapid growth, our back-end infrastructure was unable to keep up with customer demand. We are taking this step as a necessary and responsible action to sustain and strengthen our momentum in the market place.
We expect to continue normal business operations throughout the reorganization process. We are confident that we will emerge from this stronger than ever for the following reasons:
* The strength of Amp'd Mobile's brand and high customer demand for the product.
* During the reorganization process, we are working with one of Amp'd Mobile's largest investors to obtain debtor-in-possession financing. Our investor supports our vision, strategic direction and business plan.
* Amp'd Mobile's senior management team remains largely intact as we continue to focus on improving and scaling our backend infrastructure.
We are committed to assuring Amp'd Mobile services remain uninterrupted and will continue to provide our customers with the best service possible.
Amp'd Bankruptcy... [moconews]