Bankruptcy
On June 1, 2007, Amp'd filed for chapter eleven bankruptcy. According to court documents, around 80,000 of its 175,000 subscribers were recorded as nonpaying customers. Bankruptcy protection was brought on by Verizon Wireless who threatened to cut off service to Amp'd if debt owed to Verizon wasn't paid. Amp'd Mobile together with its main creditor Kings Road Investment Ltd. sued Verizon Wireless, seeking a court order that barred Verizon from cutting off service to Amp'd Mobile from its network. On June 22, 2007, an agreement was reached between Verizon, Amp'd and Kings Road to pay Verizon off with cash collateral and allow Amp'd the use of Verizon's network. The settlement was heard in the U.S. Bankruptcy Court on June 25, 2007. Amp'd indicated an intent to sell off its assets.
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