Website hosting and colocation provider
Industries
Force 10 professionals testified to the valuation and sale feasibility of this company that provides website hosting and co-location services. Our testimony resulted in the removal of the state court-appointed Receiver. We then served as investment bankers and conducted a Section 363 sale that allowed all creditors to be paid in full and ended shareholder disputes with a distribution to equity.
The company entered Chapter 11 after a partner dispute resulted in cross-claims. At first, a Receiver was appointed by the California state court. Working with counsel, insiders sought a Chapter 11 and termination of the Receivership. Chapter 11 sought to prohibit the Receiver from selling the business at below fair market value. Force 10 team members provided valuation testimony for the Debtor to support opposition to the proposed low-valuation transaction, arguing that more value could be obtained through an auction. The bankruptcy court agreed, and Force 10 team members (at their prior, separate firms) ran an auction and separately, acted as transaction manager in a fiduciary role. The result was a sale that generated approximately 60% more than the initial proposed transaction supported by the Receiver, full payment of all creditors, and a distribution to equity.
