Digerati gets $14 million stalking horse bid for Hurley stock assets

By Kali Hays

New York, June 27 – Digerati Technologies, Inc. has selected a collective bid from secured creditors Hurley Fairview, LLC and Sheyenne Rae Nelson Hurley in the amount of $14 million as the stalking horse bid for the sale of 100% of Diegrati’s equity interest in Hurley Enterprises, Inc., according to a June 26 notice filed with the U.S. Bankruptcy Court for the Southern District of Texas.

The stalking horse bid will be accompanied by either an earnest money deposit of $2 million or a binding letter of commitment.

If the stalking horse is not the winning bidder at the auction, it will receive a breakup fee of 2.5% of the purchase price, according to the stock purchase agreement.

As previously reported, an auction for the assets is set to take place July 10 with a sale hearing to approve the winning bid on July 22.

All qualified bids are due by July 2 and must be made in increments of $250,000.

The sale is expected to close no later than July 30.

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, 2013. The Chapter 11 case number is 13-22364.

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