Edgenet auction of assets rescheduled for June 6, sale hearing June 10

By Kali Hays

New York, June 2 - Edgenet, Inc.'s auction, bid deadline and sale hearing dates have been rescheduled to a later date, according to a Tuesday notice filed with the U.S. Bankruptcy Court for the District of Delaware.

The auction will be held June 6 from June 4, and any qualified bid must be submitted by the morning of June 6 from June 2.

The sale hearing will take place June 10.

As previously reported, a bidder for the assets, EdgeAQ, LLC, requested a two-week postponement of the auction and bid deadline because it was not granted access to the company's data room until May 7.

EdgeAQ was formed by former Edgenet employees Steve Proctor, Chris Dowdy and J.J. Freitag for the purpose of purchasing Edgenet's assets.

EdgeAQ also said an exclusive negotiating and diligence period offered to Edgenet's stalking-horse bidder gave that bidder the opportunity to complete months of diligence while EdgeAQ's diligence was reduced to just a few weeks.

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.

The sale is expected to close by June 30.

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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