Bluebird Fiber to Acquire Everstream Assets in “Stalking Horse” Agreement

Business-only fiber network Everstream has agreed to sell “substantially all of its operations” to an affiliate of Bluebird Fiber, a regional business-focused connectivity provider. The announcement of the acquisition says that the two firms have come to a “stalking horse” agreement, which Investopedia describes as follows: “The bankrupt company will choose an entity from a pool of bidders who will make the first bid on the firm’s remaining assets.” Everstream hopes to expedite the transaction by voluntarily entering Chapter 11 proceedings in the United States Bankruptcy Court for the Southern District of Texas. Everstream says it will operate as usual during the transition to Bluebird Fiber via a $55 million commitment it has for debtor-in-possession financing from existing lenders. If the court approves the financing, the funds will be combined with existing cash on hand to fund operations until the sale closes.