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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