Edgenet request to disband committee of noteholders refused by court

By Kali Hays

New York, April 16 - A court denied Edgenet, Inc.'s request that its committee of noteholders appointed for its Chapter 11 case be disbanded, according to an April 16 order with the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, the committee was appointed March 13 despite the objection of the company and its largest secured creditor, Liberty Partners Lenders, LLC.

Upon filing its request for disbandment, Edgenet said the committee was "not necessary to protect the interests of its constituency, the administrative expense of the committee is not justified, and the presence of the committee is counter-productive to the process of the case."

The company further claimed that the noteholders' interests were already protected by Ernest Wu, the noteholders' attorney-in-fact, and that his powers and the powers of the committee members were unclear, and therefore an impediment to the case proceedings.

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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