Digerati creditor seeks venue change, says case belongs in San Antonio

By Jim Witters

Wilmington, Del., June 27 - A Digerati Technologies, Inc. creditor is seeking to move the Chapter 11 case to San Antonio from Houston, according to a June 27 filing with the U.S. Bankruptcy Court for the Southern District of Texas.

Creditor Rhodes Holdings, LLC says Digerati listed a Stafford, Texas, address on its June 3 bankruptcy petition.

But that address "had been leased solely to MCI Partners, LLC, an entity which has no relationship to the debtor other than the fact that the debtor's majority shareholder, Oleum Capital, LLC, is purportedly owned and controlled by the same persons," the filing states.

The lease for the Stafford address is dated a day after the bankruptcy filing, according to Rhodes.

The case belongs in the U.S. District and/or Bankruptcy Court for the Western District of Texas, San Antonio Division, Rhodes asserts.

"Even today, nearly a month after the petition date, the former address in San Antonio is the only address listed on the debtor's website," the filing states.

"The debtor has never made a rent payment for its purported occupancy of the Stafford address, has never moved its office equipment or employees from San Antonio to the Stafford address, and does not even have keys to access the Stafford address," court documents state.

Digerati's principal assets are in Fairview, Mont., and Williams County, N.D., according to the filing.

Rhodes says the court is "required to dismiss this case or transfer venue to the appropriate district."

No hearing has been scheduled for consideration of the motion.

Digerati, a Stafford, Texas-based diversified holding company with operating subsidiaries in the oil field services and cloud communications industries filed for bankruptcy on June 3. The Chapter 11 case number is 13-22364.

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