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A man speaks on his Nokia cellphone outside Helsinki railway station in this file photo.Jarno Mela/The Associated Press

Wireless upstart Mobilicity is scouring the globe to find a buyer.

Its financial advisers have contacted "more than 30" potential purchasers including incumbents, new entrants, international telecoms and U.S. private-equity firms, according to new court documents filed as part of the company's restructuring.

But despite those "extensive marketing efforts," the Vaughan, Ont.-based carrier has yet to reach a binding agreement with an acquirer. And time is running out for it to do so before two key debt holder votes slated for later this month.

"Given its current financial circumstances, the Mobilicity Group needs to either reach agreement with a willing buyer for its business who can finance the operations going forward, or it needs to restructure its capital and secure additional funding in order to advance its business," reads a sworn affidavit of William Aziz, president of Blue Tree Advisors II Inc., who was retained to act as Mobilicity's chief restructuring officer.

On April 26, Mobilicity, which is legally known as Data & Audio-Visual Enterprises Wireless Inc., obtained two court orders allowing it to pursue "strategic options" including a possible sale. But if the company fails to find a buyer, it will pursue a recapitalization plan to patch up its balance sheet, a move that should keep it operational – for now.

Debt holders are scheduled to vote on the two plans of arrangement at meetings in Toronto on May 21, which leaves the carrier little time to seal a deal with a potential buyer.

Although Telus Corp. commenced takeover talks with Mobilicity earlier this year and is closely monitoring its restructuring process (it had a lawyer present for court proceedings last month, according to a source), the two companies have yet to reach a firm agreement.

And even if a deal were to materialize prior to May 21, it is unclear whether the federal government would give its blessing to such a union.

Mobilicity, meanwhile, is fighting a separate court battle with one of its bond holders, private-equity firm Catalyst Capital Group Inc., over a financing deal announced earlier this year. Catalyst, which is headed by distressed-debt expert Newton Glassman, is also eyeing control of Mobilicity and its rival Wind Mobile and is lobbying Ottawa on the file.

All this, however, is raising questions about the long-term future of Mobilicity.

In addition to conducting an international search for a buyer, Mobilicity unsuccessfully completed an investor roadshow in August and September of 2012 in an attempt to raise financing. As a result, the company pursued its bridge financing earlier this year.

Still, the company's finances remain shaky, according to court documents.

"For the quarter ended December 31, 2012, the cost of maintaining the Mobilicity Group's network, paying distributors and other service partners exceeded revenue and financing proceeds by approximately $12 million prior to financing costs, or $30 million in total," reads Mr. Aziz's affidavit.

Sources have previously suggested that Mobilicity could be worth about $350-million to $400-million if the company is mostly valued for its spectrum. But any acquirer would also need the wherewithal to tackle the company's financial woes, which have also been outlined as part of the case.

Mobilicity has about 250,000 subscribers and generates about $6-million to $7-million in monthly revenues, according to court documents.

The company's 2012 revenues were $70.19-million, up from $51.66-million in 2011, according to consolidated financial statements audited by PricewaterhouseCoopers.

Those same documents show Mobilicity's annual operating loss was $74.3-million versus year-earlier $89.9-million. While its "total comprehensive loss for the year" was $105.1-million compared to $133.4-million for 2011.

Mobilicity's total assets, as of the end of 2012, were about $387.46 million, while its liabilities totalled approximately $418.01 million. Its net debt position, as of Dec. 31, 2012, stood at $341.51 million, according to those financial statements.

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