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Catalyst owns about 30 per cent of the first lien debt in Mobilicity, which is currently valued at approximately $70-million.

Kevin Van Paassen/The Globe and Mail

Catalyst Capital Group Inc. has cut a deal with Rogers Communications Inc. to sell its debt holdings in Mobilicity at a "substantial profit," according to a source who spoke to The Globe and Mail on condition of anonymity because details of the deal are under a court seal.

Catalyst, a Toronto-based private equity firm run by Newton Glassman, is the single-biggest holder of Mobilicity's bonds.

Catalyst owns about 30 per cent of the first lien debt in Mobilicity, which is currently valued at approximately $70-million.

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Mobilicity's restructuring process began in September, 2013, and had dragged on as a result of a number of setbacks including uncertainty over whether another carrier would be allowed to purchase the company or its assets. Much of the friction arose from infighting between Catalyst Capital and the other bondholders.

The arduous process appears to be nearing a conclusion, with an Ontario court approving the sale of Mobilicity to Rogers.

An earlier version of this story said that the Catalyst agreement with Rogers is separate and distinct from the Rogers deal to buy Mobilicity. In fact the agreement is part of the same deal.

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