Amp'd Mobile creditor seeks decision regarding its future with company, seeks payments for services

By Reshmi Basu

New York, Aug. 2 - Amp'd Mobile, Inc. creditor OpSource Inc. asked for a decision regarding the future of its current agreement with the company, according to a Thursday filing with the U.S. Bankruptcy Court for the District of Delaware.

On July 22, 2005, OpSource, a private company based in Santa Clara, Calif., entered into a master services agreement, under which it stores the content and all other data for the debtor.

The Amp'd Mobile business constitutes 25% of OpSource's revenue, but the debtor's precarious financial position has left the company in limbo, the creditor said in the motion.

In addition, uncertainty surrounding the debtor's future "could force OpSource into an adverse financial position because it must continue to pay its employees, suppliers and vendor, while having no security that its biggest customer will make payment."

OpSource argued that it is a small company being made to provide services on credit when it could redirect that infrastructure to another client, adding that it "does not have the financial wherewithal to bear the business risk and cost of retaining or maintaining the services... without a guarantee of a payment at least through the month of August."

OpSourc is asking for the court to compel Amp'd Mobile to assume or reject the agreement. In addition, the company wants immediate payment of charges due.

A hearing is scheduled for Aug. 9.

Amp'd Mobile, a Los Angeles wireless phone company, filed for bankruptcy on June 1. Its Chapter 11 case number is 07-10739.

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