Edgenet eyes exclusivity extension, looks to terminate 401(k) plan

By Caroline Salls

Pittsburgh, April 23 - Edgenet, Inc. requested court approval to terminate its 401(k) plan and to extend its exclusive periods for filing and soliciting votes on a plan of reorganization, according to April 23 filings with the U.S. Bankruptcy Court for the District of Delaware.

Under the 401(k) plan, Edgenet said it matches 100% of the contributions of plan participants up to 3% of their cash salary for the plan year.

The company said the plan would not be assumed under the proposed sale of its assets. If the sale is successful, Edgenet will have no remaining employees, the motion said.

Under the proposed exclusivity extension, Edgenet said it wants to extend its exclusive filing period through July 13 from May 14 and the solicitation period through Sept. 11 from July 13.

The company said the extension is necessary to allow it to develop an appropriate course of action going forward and evaluate and liquidate its remaining assets.

Hearings on both motions are scheduled for May 14.

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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