Phone Services Co. Simplexity Hits Ch. 11 Seeking Sale

Law360, Wilmington (March 17, 2014, 6:33 PM EDT) -- Online mobile phone activator and seller Simplexity LLC sought protection in Delaware bankruptcy court on Sunday, four days after shuttering operations, as the private equity-owned company seeks a speedy sale of its assets in Chapter 11.

The cash-strapped company ceased operations and terminated more than 500 employees on March 12 after its senior secured creditors terminated a forebearance agreement and began sweeping Simplexity's accounts, according to a declaration filed Monday by CEO Frank C. Bennett III.

Simplexity is looking to turn around a quick asset sale,...
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