Movida, the Hispanic-market focused MVNO, which we have covered a few times here before, has befallen the same fate as other MVNOs in the industry: it has now filed for Chapter 11 bankruptcy protection. The company was founded in 2005, and late last year moved from Miami, Florida to Kansas City, Missouri to be “more central to its national customer base”, which sound counter-intuitive. The company fled yesterday in the U.S. Bankruptcy Court for the District of Delaware in Wilmington, reports TheDeal.
The company raised $40 million in financing last year, from a group of investors led by Plainfield Asset Management and the deep-pocketed Cisneros Group. The company’s largest unsecured creditor was Sprint (NYSE: S) Nextel, which is owed $15.9 million, the story says. Not clear: if Movida plans to reorganize or liquidate, or if it plans to seek the use of cash collateral or debtor-in-possession financing to fund its Chapter 11 case.