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Quadrant 4 Bankruptcy Settlement, Sale Approved

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The U.S. Bankruptcy Court approved Quadrant 4 Systems’ settlement and motion for an order authorizing the private sale of the Debtor’s residual assets free and clear of certain liens, claims, encumbrances and interests.

As previously reported, “As this stage of the Chapter 11 Case, the Residual Software Platforms comprise substantially all of the Debtor’s remaining assets together with the Debtor’s right, title and interest into possible causes of action in favor of the estate….The Debtor, after consultation with Silverman Consulting, Livingstone, BMO, BIP and the Committee, has determined that in order to maximize value for the benefit of its creditors, shareholders and other interested parties, a sale of the Residual Software Platforms to BIP needs to occur as expeditiously as possible. First, the Debtor submits that BIP’s credit offer of $1,000,000 (the ‘Credit Bid’) represents fair market value of the Residual Software Platforms….The Credit Bid, then, represents the best and highest offer received to date by the Debtor for the assets. Second, the value of the Residual Software Platforms is at risk of imminent decline.”

In addition, “The value of these assets are largely based on maintaining the Debtor’s highly skilled third-party subcontractor workforce (collectively, the ‘Workforce’) charged with servicing the Residual Software Platforms and maintaining relationships with customers using the Residual Software Platforms….As such, absent a quick and seamless transition of the Residual Software Platforms to BIP – an entity with the financial wherewithal to invest the necessary capital to maintain the Workforce – many in the Workforce will seek, and likely obtain, other jobs, leaving the Debtor with insufficient human resources to service customers using the Residual Software Platforms, thereby depressing the value of such asset.”

Read more Quadrant 4 bankruptcy news.

The post Quadrant 4 Bankruptcy Settlement, Sale Approved appeared first on Daily Bankrupt Company Updates | Bankrupt Company News.


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