Former Ciber’s $37 million Zayo rejection claim settlement approved

By Caroline Salls

Pittsburgh, Nov. 15 – CMTSU Liquidation, Inc., formerly Ciber, Inc., received court approval of a rejection damages claim settlement reached with Zayo Group, LLC, according to an order filed Wednesday with the U.S. Bankruptcy Court for the District of Delaware.

CMTSU said it entered into a master services agreement with Zayo under which Zayo provided it with various colocation, cloud, telecommunications and other related services.

The master services agreement was not assumed by the purchaser of CMTSU’s assets.

According to the motion, Zayo has filed more than $37 million in claims against the CMTSU estate. In addition, Zayo claims that $700,000 of that amount is related to post-bankruptcy services under the master services agreement and is entitled to administrative priority.

Under the settlement, Zayo will have a $27.75 million claim against CMTSU and will be deemed to have made a class three cash-out election, meaning it will only receive 35% of the allowed amount of its claim.

In addition, Zayo has agreed to waive the right to any other claims, including the administrative claims.

Ciber is a Greenwood Village, Colo.-based system integration and information technology services consulting company. The company filed bankruptcy on April 9, 2017 under Chapter 11 case number 17-10772.

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