Bankrupt Edgenet Challenges Security Of $20M Of Debt

Law360, Wilmington (February 11, 2014, 5:07 PM ET) -- Bankrupt private equity-owned data technology company Edgenet Inc. filed an adversary action in its own Chapter 11 case Monday, claiming that an attempt to reperfect security interests in nearly $20 million of debt connected to the debtor's 2004 sale was actually an avoidable transfer under bankruptcy rules.

Edgenet claims paperwork filed in October by the representative of promissory noteholders owed about $18 million came within 90 days of the company's petition for Chapter 11 protection, and at a time when the debtor was already insolvent, making...
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