Digerati amends bid deadline; auction to proceed sans stalking horse

By Kali Hays

New York, June 10 – Digerati Technologies, Inc. Chapter 11 trustee William R. Greendyke will conduct an auction for the sale of the company’s equity interests in Dishon Disposal, Inc. June 19, according to a Tuesday notice with the U.S. Bankruptcy Court for the Southern District of Texas.

Greendyke said he received one stalking horse bid May 29, but after consulting representatives of Digerati and Dishon, determined “it is in the best interests of the trust and the Digerati estate to proceed to auction without selection of a stalking horse bidder.”

All qualified bids are to be submitted by June 17 and must be in an amount no less than $10 million.

The previous bid deadline was to be no more than five days after the announcement of a stalking horse bid.

An earnest money deposit of $2 million will be required of any qualified bid which will be refunded within three business days of a sale closing.

The sale is expected to close on or before July 18, according to the notice.

A hearing to approve a successful bidder is expected to take place the week of June 30.

Digerati is a Stafford, Texas, diversified holding company with operating subsidiaries in the oil field services and cloud communications industries. The company filed for bankruptcy on May 30, 2013 under Chapter 11 case number 13-33264.

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