Verizon to court: Amp'd can't pay, we want out

Yeah, the court system may have given Amp'd a short stay of execution, but the troubled MVNO is far from being out of the woods. The latest chapter in Amp'd's bankruptcy saga has Verizon all fired up over its inability (or inaction) to get a loan lined up, all the while racking up some $370,000 in connection charges daily on Verizon's backbone. For anyone keeping count, that means Amp'd now owes Verizon something on the order of $56.6 milion, and the $9,000 (yes, nine thousand dollars) in Amp'd's coffers aren't quite going to cover the damage. In a court filing demanding that it be let out of its end of the well-breached agreement, Verizon says that it shouldn't be forced to participate as an "unwilling gambler" while Amp'd struggles to get back on its feet. Of course, if the plug does get pulled, it's an instant Amp'd death sentence -- so if you happen to be an Amp'd subscriber and your line goes dead, well, you can probably figure out how the court has ruled.

[Via mocoNews]

[(Unverified) Posted Jul 19th 2007 3:21PM]

Ampd just needs to give it up and die already! They were a risky venture to begin with and they've spent over $350 Million that is just sad!!

[Cactus Posted Jul 19th 2007 4:58PM]

This, only days after SunRocket VoIP went under overnight... for much less than this. I feel more for Amp'd subs though, since most of them can't just jump ship right now without risking an ETF... and if they wait for the company to go under, number-porting might no loger work.

Good luck, Amp'd users. If you're dependent on that phone... be prepared and get yourself a cheapie prepaid backup. Unless a foolish last-minute white knight comes in, it's over -- and with that debt-to-sub ratio, I'd be stunned.

[(Unverified) Posted Jul 19th 2007 4:58PM]

HAHAHAHAHAHAHAHA

[heytherekiller Posted Jul 19th 2007 5:18PM]

since like 98% of amp'd subscribers didnt pay their bills anyway, im sure the ETF is a nonissue... just dont pay it... and guess what... if the company disappears next week, who are you gonna owe that money to?

[(Unverified) Posted Jul 19th 2007 7:06PM]

Rob,

Since Amp'd owes Verizon, Verizon may have to settle for Amp'd accounts recievable instead of cash. Then, the subs in non-payment will end up owing $ to Verizon. Verizon knows how to collect on debts, or just sell em to a collections agency and wreck peoples credit.

[Cactus Posted Jul 19th 2007 6:07PM]

I agree with you - if I was on that sinking ship, I'd jump, ETF be damned. But if you're a user that actually has decent credit (hah) and someone was crazy enough to buy the company out, you might still be on the hook for it... or face a stain on your credit report.

Another one: did Amp'd require deposits from some poor-credit customers, like the major players do? Good luck getting that back...