Edgenet seller noteholders request official committee representation

By Caroline Salls

Pittsburgh, Feb. 19 - Three Edgenet, Inc. seller noteholders asked the U.S. Bankruptcy Court for the District of Delaware to appoint a noteholders committee for the company's bankruptcy case or a committee of unsecured creditors comprised of noteholders, according to a Tuesday court filing.

The seller noteholders are a group of 24 individuals who formerly held equity interests in Edgenet before it was acquired by Liberty Partners Holdings Partners 44, LLC.

Seller noteholders Fred Marxer, Timothy Choate and Davis Carr said any unsecured creditors committee comprised of noteholders would include noteholders who agree to waive any continued security interest arising from their seller notes.

No official committee of unsecured creditors had been appointed as of Tuesday for Edgenet's case.

"All of the seller noteholders' claims are significantly more substantial than those of the eight creditors listed on the debtors' list of largest unsecured creditors," the motion said.

"They have, collectively, a substantial stake in the outcome of this bankruptcy case but individually lack the incentive to retain counsel and other professionals to perform the important and necessary functions served by creditors' committees in Chapter 11 cases."

A hearing is scheduled for March 11.

Edgenet, an Atlanta-based provider of cloud-based content, applications and services, filed bankruptcy on Jan. 14. The Chapter 11 case number is 14-10066.

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