Wave2Wave Communications' $21.78 million asset sale procedures OK'd

By Lisa Kerner

Charlotte, N.C., Aug. 23 - Wave2Wave Communications, Inc.'s stalking horse asset purchase agreement for the proposed sale of substantially all of its assets was approved, according to a Thursday filing with the U.S. Bankruptcy Court for the District of New Jersey.

Signal Share Corp. is the stalking horse bidder. As previously reported, Signal Share is an entity controlled by Robert DePalo, the chief executive officer and managing member of first-lien and second-lien pre-bankruptcy lenders Brookville and Veritas, as well as the managing member of Wave2Wave's debtor-in-possession lender.

Signal Share has offered to pay $3.5 million in cash for the assets, as well as to assume specified liabilities.

According to a prior motion, liabilities to be assumed under the stalking horse purchase agreement would include $10.25 million owed under the Brookville loan, $4.53 million owed under the Veritas loan, $3.5 million owed on the DIP loan, $1.75 million in accounts payable, all assigned contract, real property lease, personal property lease and permit liabilities, obligations related to any customer deposits and customer advances and credits, all cure costs related to the assigned contracts and leases and all liabilities and obligations related to claims arising out of the ownership of the purchased assets or the employment of any transferred employees.

Bids are due by 5 p.m. ET on Sept. 13 and must be for at least $22.43 million in cash.

Wave2Wave said the minimum competing bid amount includes the total $21.78 million to be paid under the stalking horse agreement plus a $653,288 break-up fee to be paid to Signal Share if it is not the high bidder.

An auction, if necessary, will be held on Sept. 20.

The sale hearing is set for Sept. 27.

Wave2Wave is a Hackensack, N.J.-based provider of high-speed broadband services. It filed for bankruptcy Feb. 17, 2012 under Chapter 11 case number 12-13896.

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