Jolla files for debt restructuring

News Wireless Global 24 NOV 2015
Jolla files for debt restructuring
Mobile developer Jolla has filed for a debt restructuring programme, after it failed to raise more funding for its Sailfish OS. Jolla said its latest financing round, which aimed to end in November, was postponed and the company filed for the debt restructuring n Helsinki in order to ensure the continuity of its business. In an effort to reduce its costs, the company said it will temporarily lay off a big part of its personnel. 

Started four years ago by former Nokia employees, Jolla has raised USD 50 million to date to develop its Sailfish mobile operating system based on the MeeGo software first started by Nokia and Intel. Jolla has released two smartphones and a tablet based on Sailfish. After much time developing, the company started looking in the past year for commercial partners, which have ranged from local operators in Finland to potentially the Russian government or South African investors. 

Jolla said it needs more time to move from "a development phase to a growth phase" and will work on tailoring the operating system to fit the needs of different clients. The company said it has "several major and smaller potential clients who are interested in using Sailfish OS in their projects”. Chairman and co-founder Antti Saarnio said the debt restructuring should lay the groundwork for turning the company profitable, adding "Sailfish OS is a very valuable asset and worth fighting for". 

Categories:

Mobile

Companies:

Jolla

Regions:

Global

Tags:

Bankruptcy - Insolvency, Handsets, Financial funding

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