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Velti's U.S. units file for Chap. 7, Chap. 11; shares crash

  • Velti's (VELT) Mobclix mobile ad network unit has filed for Chap. 7 bankruptcy with a Delaware court, and other U.S. Velti units have filed for Chap. 11. Non- U.S. Velti operations are said to be "continuing operations as usual" for now. (PR)
  • Velti also announces it's selling its U.S., U.K., and Indian mobile marketing businesses, as well as parts of its U.S. ad businesses, to Blackstone's credit division in a deal expected to close by year's end. GSO has promised to give Velti $25M in debtor-in-possession financing, and a $10M cash infusion.
  • Mobclix has been delinquent with its payments to developers for some time, and has been contending with liquidity issues. Its wind-down will be administered by a court-appointed trustee.
  • Shares -72.8% premarket to $0.08.
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