GigaMonster’s bid procedures approved; auction set for Feb. 28

By Sarah Lizee

Olympia, Wash., Feb. 8 – GigaMonster Networks, LLC received approval of the bid procedures for its assets, according to an order filed Wednesday with the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, Bel Air Internet LLC and Everywhere Wireless, LLC, entities affiliated with debtor-in-possession lender M/C Partners VIII, LP are acting as stalking horse bidder. The purchase price under the deal is $14 million.

The bid protections under the stalking horse agreement will be no more than 3% of the cash purchase price.

Under the bid procedures, the bid deadline is 4 p.m. ET on Feb. 24, the auction will be held on Feb. 28, if needed, and a sale hearing will take place on March 2.

The assets that aren’t part of the stalking horse agreement are also up for sale.

Prior to the hearing, the official committee of unsecured creditors had objected to the bid procedures. At the hearing, counsel for the committee said that it had worked through some of the issues and had narrowed them down to key points that could potentially be worked through.

The Marietta, Ga.-based internet provider filed bankruptcy on Jan. 16 under Chapter 11 case number 23-10051.

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