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Published on 4/11/2014 in the Prospect News Distressed Debt Daily.

Edgenet seeks approval of bid procedures for $6.5 million asset sale

By Caroline Salls

Pittsburgh, April 11 - Edgenet, Inc. requested court approval of the bid procedures for the proposed sale of its assets, according to a Friday filing with the U.S. Bankruptcy Court for the District of Delaware.

PCF Number 2, Inc. is the stalking horse bidder, with a proposed purchase price of $6.5 million, minus some adjustments specified in the sale agreement. The company will also assign assumed contracts to the buyer, and the buyer will assume some liabilities.

Competing bids must at least equal the amount of the stalking horse bid, plus a $645,000 minimum initial overbid, $395,000 in bid protections to be paid to PCF if it is not the high bidder, comprised of a $195,000 break-up fee and $200,000 expense reimbursement, and a $250,000 initial overbid amount.

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


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