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Goodman Networks Bankruptcy Settlement Approval Sought

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Goodman Networks filed with the U.S. Bankruptcy Court an emergency motion for entry of an order (a) approving a settlement by and between the Debtors and AT&T and (b) approving the settlement by and between the Debtor and the Comptroller of the State of Texas.

The motion notes, “…[T]he State of Texas has asserted approximately $35,734,485 in claims (including interest and penalties) against the Debtors on account of certain state and local sales and use taxes (collectively, including any unliquidated amounts, the ‘Disputed Texas Tax Liability’)….Article IX.A.4 of the Plan provides, as a condition precedent to the effectiveness of the Plan, that ‘all tax liabilities asserted against the Debtors in the amount of $5 million or greater have been resolved in a manner acceptable to the Debtors and the Required Consenting Noteholders.’…Under the Texas Settlement and the AT&T Settlement, the Debtors’ maximum contribution to a resolution of the Disputed Texas Tax Liability with Texas will be an approximate $4.9 million cash payment from existing liquidity.”

The Debtors also filed with the Court a motion to file under seal certain portions of these proposed settlements, explaining “The Debtors, AT&T, and the State of Texas consider certain terms of these settlements, and the parties’ respective contributions towards payment of the Disputed Texas Tax Liability, to be sensitive confidential information. Maintaining the confidentiality of this information was part of the agreements reached in negotiating these settlements. If the Debtors are required to disclose this information in connection with the filing of the 9019 Motion, these settlements could be jeopardized and could result in significant harm to the Debtors’ estates, AT&T, and Texas.”

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The post Goodman Networks Bankruptcy Settlement Approval Sought appeared first on Daily Bankrupt Company Updates | Bankrupt Company News.


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