Mobilicity backers sue Canada government for C$1.2 billion

Fri Sep 5, 2014 10:23am EDT
 
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article
[-] Text [+]

TORONTO, Sept 5 (Reuters) - Quadrangle Group, a private equity backer of small Canadian wireless provider Mobilicity, said Friday it filed a statement of claim against Industry Canada seeking C$1.2 billion ($1.1 billion) in damages, claiming negligence and breach of contract.

The company, joined by fellow Mobilicity investor Data & Audio Visual Enterprises Investments Inc in the claim, said it had invested hundred of millions of dollars in the new entrant to Canada's wireless industry after the government body assured it of favorable terms that were subsequently breached.

The Canadian government did not immediately respond to a request for comment.

Mobilicity is currently under creditor protection.

(1 U.S. dollar = 1.0876 Canadian dollar) (Reporting by Alastair Sharp; Editing by Bernadette Baum)