KCMVNO sues Cozac for withheld asset sale payment

By Caroline Salls

Pittsburgh, June 26 - KCMVNO, Inc. is suing Cozac, LLC and two of its affiliates for breach of contract, seeking payments owed under an asset purchase agreement, according to a Thursday filing with the U.S. Bankruptcy Court for the District of Delaware.

According to the complaint, Cozac, Cozac Wireless, LLC and America's Premier Corp. agreed to pay $2.8 million for assets of Movida Communications, Inc., now KCMVNO, in four installments.

However, KCMVNO said the Cozac entities have not made the $1 million second installment payment due June 17, and they have informed KCMVNO that they do not intend to make the payment.

Under the sale agreement, a $600,000 payment is due by July 17, and the final $600,000 installment is due by Aug. 16.

In addition to the $1 million installment payment, KCMVNO is also asking the court to order the Cozac entities to pay $1 million for breach of a guaranty agreement, $2.7 million for unjust enrichment, $1 million in interest, an unspecified amount for fees and expenses and an amount to be determined by the court for wrongful withholding of accounts receivable information.

The company has also asked the court to confirm that it had more than 125,000 active subscribers as of the sale closing date.

KCMVNO, a Kansas City, Mo.-based mobile virtual network operator that provides wireless services to Hispanic communities, filed for bankruptcy on March 31. Its Chapter 11 case number is 08-10600.

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