Edgenet gets court approval on bidding procedures for June asset sale

By Kali Hays

New York, May 5 - Edgenet, Inc. received court approval of bid procedures for the proposed sale of substantially all of its assets, according to a Monday order with the U.S. Bankruptcy Court for the District of Delaware.

The bid deadline is set for June 2, with an auction to take place June 4 if the company receives one or more qualified bids.

As previously reported, 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 of 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.

A sale hearing is scheduled for June 6.

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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