Don’t say I didn’t tell you so, but it is true. Once again, a major company headed by Ryan Wuerch has hit the financial skids and is in debt to the tune of about 12 times their assets. The reported filings show that Solavei is carrying about $60+ million in debt while only having $5.3 million in assets. Not only does this confirm the fact that their payout structure was completely flawed from the start, but it now also means that they are in a terrible position to negotiate a new agreement with T-Mobile in September.
While the bankruptcy is a bit of a surprise, it’s obvious that the people at the top made a boatload of money off of the shoulders of the people at the bottom of the chain. Sure, there were plenty of thousandaires in the mix, but those days are all but gone for those coming on board now.
Solavei is continuing operations under chapter 11 protection, but don’t expect a miracle coming out of this one. Look for payments to continue short term, but the longer term reality is that most of the Solavei users will probably be looking to change to a new plan from Red Pocket Mobile or Simple Mobile before much longer.
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