Amp’d Bankruptcy Filing: Verizon Wireless Largest Creditor With $33 Million

67 Comments

Amp’d Mobile’s Chapter 11 bankruptcy filing in U.S. Bankruptcy Court in Delaware has a wealth of info on the company’s creditors, and a list of shareholders of the company (we broke the story first here). According to the court documents, Amp’d owes about $33 million to its infrastructure/network provider Verizon Wireless, followed by its handset provider Motorola — $16 million; Vivendi about $10 million, BestBuy about $8 million; MTV Networks about $1.8 million; and others. In total, the total debt is more than $100 million. Amp’d says its assets total less than $100 million.
As for the shareholders, CEO-founder Peter Adderton (through his trust) holds the largest share of common stock, just above 5 percent. RedPoint Ventures holds around 3 percent plus more acrued through various equity rounds. Other shareholders in five subsequent rounds are also listed … in addition to VCs Redpoint, Highland Capital Parters, Columbia Capital, these include creditors MTV Networks, Qualcomm, Vivendi Universal, Best Buy and many others.

We have made a portion of the filing available as PDF here…creditor list starts from page 7 of the PDF.

67 Comments

sam

Me too. I purchased two "free" phones 7 months ago—no rebates still. Could never get through to customer service. I am baffled that Ampd even made it as long as they did. Who out there is a lawyer and wants to try to organize a lawsuit?

joanel

Class action has got to be next for us–the customer. Damn the investors and everybody else! My service was suspended on the 26th of june. For no reason, I might add! I got someone on the line after an hour of waiting and she said she restored my service-=–NOT. I have tried to get tech support on the line for three days…..no answer….I got someone on the line from billing and they even said tech support number no longer works. I have been trying to port my number over for two days and it can't happen because my NEW phone company can't even get AMPD on the phone!!!!! What's going to happen when AMPD keeps sending me a bill!!! Write them a letter demanding your service to be terminated due to poor serivce and write as much detail as possible, then send it certified mail—-Then at least you have some sort of documentation….fortunately I haven't lost any money YET–untl they try to bill me for early termination fees and next months bill that I haven't used. If anyone knows how to start a class action law suit DO IT!! My email is [email protected] please keep me in the loop!

Mad Val

This is by far the worst, most dispicable, if not criminal company that I have ever encountered. I was over-charged by hundreds of dollars on my first bill, and after spending hours and hours on hold, being hung-up on and being shut down twice, I was told I'm not getting any credit ! Then the supervisor said, if I don't like it I can go to another company and pay them $600.00 for early termination of my contract !! I have already filed complaints with the Better Business Bureau and the FCC. As far a a class action law suit goes …. I'm in!!
I found this website if anyone is interested:
http://class-action.legalview.com/

mick mars

news flash-money is now free—lets get this class action lawsuite going. all of us can get them.

matty g

The customer service is the biggest joke ever. i never recieved a rebate (richard) so keep thinking you will, and see what happens. You're better off trying to get that 100 from me!

Richard

I have been waiting for my $100.00 rebate for 6 months. The rebate form said I would recieve this in 6 to 8 weeks, not six to eight months. This is starting to seem like a scam from the start. Pre-planned to steal from the working class. We need to get a class action lawsuit started asap. Anyone with information of such please forward me the information. [email protected]

Domenico Di Salvo

I just found my information on my rebate on their lookup service. It's still "processing" after almost a year. This is ridiculous. If anyone knows how to get a class action lawsuit up, please post information here or feel free to email me. <a href="mailto:[email protected]?subject:Amp'd%20Class-Action">[email protected]</a>

D.V.J

i have the same problem, i've been billed for oversea calls for up in the 300's and now i dont have any service but i still have to pay my monthly costs, even though they cannot get any answers. what is there to do about this?

don

I think its class action lawsuit time… Missing rebates, hybrid plans acting like prepaid plans, cant check your minutes… Poorly run company, I think Verizon forced Ampd into bankruptcy so they can get 200,000 new customers to get ahead af AT&T (with I Iphone). Thus if Verizon says we got 200,000 subs and AT&T only got xxx,xxx amount with the most anticaptted phone in years, clearly the I-Phone is a flop other wise why do we have more new subs then at&t

Domenico Di Salvo

i purchased an amp'd mobile contract in september. i've not received a rebate, i've not received a replacement phone that was supposedly sent out twice because the phone is so glitchy it's practically unsusable. i was told theres no way to find out if you've over-gone your minutes. my phone's been shut off now for a month because i've not paid my bill due to this. 4 times i asked about my rebate and 3 times i asked about the phone. i was told to email some third party company about my rebate and never received a response. they said they couldnt find my information in the system for the rebate. the internet customer service tells me theres no way to verify my account online so i have to call in. and when i call i'm on hold for over a half an hour to get the same response every time. has anyone else had these kinds of problems? if so is there any kind of class action against them for this?

Tom Brown

I'm just one of the poor slobs that purchased a phone and the service. I'm not out millions, just the $100 dollar mail-in rebate (and the more than $100 in cash) I payed for the phone…plus the time wasted on the calls for service and waiting for online help.

And I'm still waiting for that call from the tech they promised would make all the problems go away. Looks like the problems won't be fixed; but they will be going away…along the company.

I'm one of the few "cell phone challenged" people left in America. I only use one when I need to. I've waisted money on plans. I've waisted money on other pre-pay providers. However, I do like having one for emergencies. Friends and family say, get rid of the home phone and go cell phone only. Maybe I will…after I get that rebate I've been waiting seven months for!!!

kenny

When this stuff happens,you have to hold everyone account_ able
president(investors)
employees
customers
master agents..dealers
motorola…verizon…
"a brand with no foundation,runs through seaweed water drowns"
with a little true powers in communications they can cook together a plan"maybe"maybe not.
time to call "mcgraw"
$360 million will with hold a start up company in this market(us)and cananda.
change=ing is somethings we all go through….
waiting for redpoint to call me…..

kenny

well,well……….they could make a movie…that will"happen" thus taking a lot of bills away.

ray mackner

how is a consumer suppose to know about a companies poor work ethics? All I wanted was a cell for my son ,he got caught up in the advertising hype.

daniele plumber

I would like to know how to file a class-action lawsuit against amp'd mobile. I brought 3 phones on the hybird plan and it started acting up as a pay-as-you-go plan, eating all the money in a matter of days. When I call to ask for credit, I get cussed out, hung up on, and told I must make payments before i can use the phone again. It would be nice if we all could get together and do a class-action lawsuit. I also got charged for a 4th phone that I never brought and I am still fighting for my money back on that one.

Adriam

what does this mean?
im still confused about this
whats chapter 11?
do i need to change phone companies
can someone explain it to me

Fred Flintstone

Let's pick the next f*cked company: mobiTV? SlingMedia? Jamba?

Thomas

Isn't the bubble from web 1.0 was supposed to bring fiscal responsibility back into startup? WTF – $360 million down the toilet. What are they teaching in business schools these days any way?

I heard the guys at MobileTV.net launched their mobile services on a budget of less than 10 grand and they're doing very well.

Paul

Yeah, I too paid the bills on time and recieved a letter from amp'd stating that I haven't paid on time. I called several times concerning this matter and the problem was no resolved. I've gotten tired of this company and changed providers. If anyone has the same problems as I do please let me know. There could be a "Class Action Suit" against this company. I don't want it to affect my credit.

Grammar School

Unknown,
Perhaps you should consider the proper usage of "where" & "were" prior to composing such a passionate posting. This makes you appear very uneducated and devalues anything you say in your post.

m franck

If you ever dealt wih their customer service department, you would be able to see why they can't make any money. I called to resolve an issue- a billing mistake of more than $500-and was told to call back in two to three weeks to give them time to look into the matter. The lady I spoke to was very helpful-but she could not restore my service, even though it was their mistake. So here I am with a phone I can't use and getting billed on my charge card for service I don't have. I'm sure there are plenty of others who have the same complaint-actually it is a good way to raise capital-just rip off your customers!

Kate

Someone must have one hell of a golden parachute attached to a huge boat filled with a mother load of cash waiting on the coast near Newport Beach. I have seen Helio spending on advertising, but none from Amp'd. If you want to hire an executive or executive team where real due dilligence is performed, http://www.caswellsmith.com

Busta Co

"They really believed in this up company, as one of the front faces for you, you really make me look bad."

Tell us what you look like so we know how bad you really look. Also, you're so busted for posting! 2 extra shifts in collections as punishment!

Peter

James, couldn't have said it better myself. I am willing to bet that very little diligence was done on this by the Vcs. They all probably got caught up in the fancy MTV parties, hanging out with rappers that Amp'd worked with, etc etc.

I'm betting that there will be lawsuits coming and some of the VCs will have to answer some serious questions around oversight, audit committee activities etc. Failures like this dont happen overnight. It took many months of terrible accounting and controls to get to where they are.

I bet some VC careers will be over as a result of this one as well.

Will this deal become the poster child of of the current "boom"? Much like eToys or Pets.com were 6 years ago? I think some of the same investors are involved in this deal as some of those past failures too…..

Unknown

I am really shocked, but had a gut feeling that this was happening not to long ago, as an employee I knew something was sketchy with the way things where going on. They made up excuses of why certain things, where the way they where, like being low on phones accross the u.s, and not paying employees on time. Shame on Peter Adertton, for knowing, and allowing this to happen. good job making sure all of your friends, where debtors, as well, especially since you hold the most stock. here ya go, lie on reports, get investors, keep the money, owe debtors, never pay debtors, what you owe. Good job, thanks for showing the 18 to 35 how to do business. They really believed in this up company, as one of the front faces for you, you really make me look bad.

James

it would be interesting to find out how much due diligence all those investors actually did on the company and its business model etc before they invested as opposed to getting caught up in the hype of hollywood parties and free tickets to the motocross.

Thomas

Tsk, tsk, tsk…those L.A. pretty boys. Can't run a company to save their lives but they do know how to bring in the money, don't they. The good thing about our superficial society is that all you have to be is good-lookin' to separate investors from their money. Well done Peter!

Mark Evans

The Amp'd story – raising so much venture capital and then filing for bankruptcy – protection is unbelieveable. How did they ever think the concept was going to fly, and how were they able to convince so many investors to come on board?

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