MobiTV, committee seek approval of settlement with lender Ally Bank

By Sarah Lizee

Olympia, Wash., June 25 – MobiTV, Inc. and its official committee of unsecured creditors are seeking court approval of a settlement and plan support agreement with pre-petition lender Ally Bank, according to a motion filed Thursday with the U.S. Bankruptcy Court for the District of Delaware.

The company said the structure of the settlement agreement effectively eliminates over $15 million from the general unsecured claims class, which will give meaningful recovery to trade creditors.

The settlement also resolves all outstanding litigation among the parties, which will preserve substantial monetary resources that will be made available to general unsecured creditors.

The pre-petition lender has agreed to support and not object to the company’s Chapter 11 plan.

A hearing is scheduled for July 12.

MobiTV is an Emeryville, Calif.-based provider of live and on-demand video delivery solutions. The company filed bankruptcy on March 1 under Chapter 11 case number 21-10457.

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