Bankruptcy News

We've summarized the latest docket activity and news for publicly traded companies currently operating under U.S. Bankruptcy Court protection.

Bankruptcy/Chapter 11

Digerati Technologies Confirmation Denied

The U.S. Bankruptcy Court issued an order denying confirmation of Digerati’s Technologies’ Second Amended and Restated Plan of Reorganization. With this order, the Court cancelled the continued confirmation hearing scheduled for February 18, 2014. Among other things, the Court states, “In exercising its duty, this Court is persuaded that the Debtor cannot satisfy Section 1129(a)(5)(A)(ii), and that therefore the Plan cannot be confirmed….The fact that the Debtor is a publicly traded company makes it even more difficult for the Debtor to establish that keeping Smith and Estrada on board under the terms proposed in the Plan is consistent with the interests of public policy.” The Court also scheduled a February 18, 2014 simultaneous hearing to consider the following: (1) motion to reconsider the order extending the Company’s exclusivity period and (2) emergency motion to terminate this exclusivity or, in the alternative, to appoint a Chapter 11 trustee to the case.

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