Open Range stalking horse bidder backs out; company to liquidate

By Jim Witters

Wilmington, Del., Nov. 15 - Open Range Communications, Inc.'s stalking horse bidder withdrew from the deal about an hour before the sale hearing began on Tuesday in the U.S. Bankruptcy Court for the District of Delaware.

Debtors attorney Norman L. Pernick told the court that he received a two-sentence letter at 12:57 p.m. ET stating that totheHome.com, LLC would not proceed with its $2 million bid for substantially all the debtors' assets.

No other bids were received, and no auction was held.

The debtors will turn to plan B in their debtor-in-possession credit facility budget, which is an orderly liquidation of the business, Pernick said.

He said that he plans to file motions by Nov. 18 and is not expecting any objections.

A hearing on the liquidation of assets and rejection of leases is scheduled for Dec. 7.

The liquidation process should take six to eight weeks, Pernick said.

The debtors consider totheHome.com in breach of contract and plan to pursue litigation, Pernick said.

Open Range Communications is a Greenwood Village, Colo.-based broadband company that filed for bankruptcy on Oct. 6. Its Chapter 11 case number is 11-13188.

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