As many are aware, NetVersant Solutions, Inc. ("NetVersant" or "Debtors"), a provider of voice, video and data communication services, filed for bankruptcy in the United States Bankruptcy Court, District of Delaware, on November 19, 2008. Contemporaneous with its bankruptcy, NetVersant filed an adversary action with the Bankruptcy Court seeking injunctive relief against against a long list of suppliers and subcontractors who are currently working on projects with NetVersant’s customers. NetVersant filed the adversary action in order to bar its suppliers and subcontractors from taking any action:
[T]o file, assert, collect on or otherwise enforce any lien, trust fund or other rights against any of the Debtors’ customers, any property owned or leased by any customer, any payment made or to be made by any customer under or with respect to any contract between any Debtor and any customer, or any cash or receivables of any Debtor for 60 days. Read the NetVersant Complaint for Injunctive Relief here.
As stated in its Complaint, NetVersant seeks injunctive relief against its suppliers and contractors in order to prevent them from commencing "enforcement actions [that] will destroy the value of the Debtors’ business and its ability to continue as a going concern." On December 10, 2008, the Bankruptcy Court entered the Order for Preliminary Injunction. The Order provides NetVersant with injunctive relief through February 10, 2009.
On the same day that it filed for bankruptcy, NetVersant also filed a Motion Authorizing the Sale of Substantially All of Their Assets (the "Sale Motion"). Read the NetVersant Sale Motion here. According to pleadings filed in NetVersant’s adversary action, NetVersant sought injunctive relief against its suppliers and subcontractors to preserve the value of its assets so they could be sold under the Sale Motion. The Sale Motion is currently scheduled for a hearing on December 19, 2008.