Mobilicity, a Canadian wireless telecom company, had said it got creditor protection thanks to an Ontario court on Monday. The company has been seeking approval from regulators of the buyout deal extended by an anonymous buyer.

The Ontario Superior Court of Justice had approved a CAD30 million or USD29.2 million debtor-in-possession financing from Mobilicity's debtholders under the Companies' Creditors Arrangement Act. Lyons and chief restructuring officer Bill Aziz said the order provided an initial stay on all claims againts the wireless telecom company for 30 days. The claims are known legally as Data & Audio-Visual Enterprises Holdings Inc. The order also instructed suppliers to continue with their dealings with Mobilicity, Aziz said.

The deal would reportedly have Mobilicity continue operating against the already saturated telecoms market in Canada. Mobilicity faces tough competition from dominant players Telus Corp, BCE Inc's Bell and Rogers Communications Inc.

The name of the anonymous buyer has not been disclosed by Mobilicity, but several big names in the telecom industry, like Telco and Verizon Communications Inc, had popped up since announcing in July that it had been talking to potential buyers.