Open Range Communications case converted to Chapter 7 as of Feb. 24

By Jim Witters

Wilmington, Del., Feb. 23 - Open Range Communications Inc.'s Chapter 11 bankruptcy case will be converted to a Chapter 7 case, effective at 5 p.m. ET on Feb. 24, as a result of a ruling Thursday in the U.S. Bankruptcy Court for the District of Delaware.

Judge Kevin Carey granted the debtors 24 hours to pay all allowed claims or to make allowance for those claims to be paid before the conversion became effective.

Debtors attorney Norman L. Pernick said the debtor "attempted to mediate issues that could have led to a confirmed plan" but "exhausted all our options."

The company got to the date of a sale hearing before its lone prospective buyer backed out.

The company explored the feasibility of proposing a Chapter 11 plan, including a possible settlement of OEP Open Range Holdings, LLC and U.S. Department of Agriculture, Rural Utilities Service claims.

However, Open Range said, "there was no reasonable prospect for achieving a settlement on the OEP claims or the RUS claims."

"Conversion is the best option now," Pernick said.

Nonetheless, the debtors achieved some of the goals of its bankruptcy case, Pernick said.

The company was able to transition its customers to other providers, auction its assets and arrange an orderly transition into Chapter 7, Pernick said.

Christopher A. Ward, representing the official committee of unsecured creditors, said the Chapter 7 trustee should be able to "hit the ground running" in pursuit of avoidance actions and other claims, including questions about a $4.9 million account.

Open Range 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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