SiFi Networks America Closes $5.85M ArcLink Sale, Seeks Liquidation
SiFi Networks America closed its sale to ArcLink Fiber LLC on August 7, 2026, and is now seeking approval of a liquidation plan. The debtor’s August 13 amended plan describes $5.85 million in aggregate sale consideration, primarily a credit bid, including $200,000 in cash. A negotiated settlement provides at least $175,000 to fund a proposed liquidation trust for unsecured creditors, together with certain estate claims and excluded assets. Amended plan, pp. 23–24
On August 18, the debtor filed a notice scheduling the confirmation hearing for September 30, 2026. The court has conditionally approved the combined plan and disclosure statement for solicitation purposes only; that approval does not establish confirmation or effectiveness. This account reflects docket review through September 9, 2026. Confirmation hearing notice
| Debtor(s) | SiFi Networks America, LLC |
| Court | U.S. Bankruptcy Court for the District of Delaware |
| Case Number | 26-10912 |
| Petition Date | June 5, 2026 |
The debtor’s bar-date notice confirms the petition date, court, and case number.
ArcLink’s Credit Bid Led to a Completed Sale
ArcLink occupied three positions in the transaction: prepetition secured lender, debtor-in-possession lender, and purchaser. The amended plan reports that the court entered the sale order on August 6 and that the transaction closed the next day. Its stated $5.85 million purchase price comprises the bankruptcy financing obligations, the prepetition note’s principal at closing, and $200,000 in cash. The headline consideration therefore does not represent cash available for distribution to unsecured creditors. Amended plan, p. 23
The debtor’s financing also expanded during the case. The initial facility contemplated $3.13 million in new-money loans plus a roll-up of the prepetition note, with $1.135 million made available under the interim order. The amended plan says the final financing arrangement added $300,000 for committee professionals, increasing the new-money facility to $3.43 million. It reports a 10% annual interest rate and no fees. These facility amounts should not be read as a statement of actual cumulative draws. Amended plan, p. 21
The Settlement Creates a Separate Source of Unsecured Recovery
The official committee of unsecured creditors negotiated a global settlement with SiFi and ArcLink covering the financing, bidding procedures, sale, and plan. The settlement provides for at least $175,000 in liquidation-trust funding from the lender, certain estate claims and causes of action, and assets excluded from the purchase agreement. The committee’s August 13 letter supports the plan and emphasizes that the predominantly credit-bid transaction left limited sale proceeds for unsecured creditors. Committee support letter
Under the proposed plan, holders of allowed general unsecured claims would receive proportional interests in the liquidation trust. The $175,000 is trust funding, not a promised distribution of that amount to creditors. Actual recoveries depend on the assets available for distribution and the claims ultimately allowed. Amended plan, pp. 23–24, 31–32
The plan’s claims table estimates general unsecured claims at approximately $1.30 million, but expressly makes that figure subject to material revision after the general bar date and to any claim Generate may file concerning its litigation. It separately lists approximately $23.06 million in intercompany claims. Those distinctions matter: the earlier $26.4 million unsecured-debt figure included approximately $23 million of intercompany obligations and is not interchangeable with the proposed general unsecured class estimate. Amended plan, pp. 19, 32
Equity interests would be canceled without a distribution on the plan’s effective date. The debtor would wind down, transfer remaining trust assets, and dissolve as soon as practicable after effectiveness. These remain proposed plan consequences. Amended plan, pp. 24, 39
A Project-Management Business Lost Parent Funding
SiFi Networks America is a Delaware LLC and wholly owned subsidiary of the UK’s SiFi Networks America Ltd. The debtor’s role within the broader open-access fiber business was principally project management and deployment support. Institutional investors owned the project companies through which individual networks were funded; the debtor earned fees for developing and managing those networks. The amended disclosure statement reports approximately $10 million in annualized revenue, primarily from management fees. Amended plan, pp. 18–19
The debtor attributes its filing to the parent’s withdrawal of working-capital support, adverse litigation results, and vendor threats to pursue legal action or discontinue services. ArcLink supplied a $2.2 million secured prepetition loan on May 6, 2026, after the parent had previously funded the debtor’s working capital. Amended plan, pp. 19–20
The Generate dispute added substantial exposure. According to the amended disclosure statement, arbitration awards issued in January and May 2026 found the debtor jointly and severally liable for approximately $16.3 million, plus approximately $1.2 million in attorneys’ fees. The defendants sought to vacate the partial final award in Delaware’s Court of Chancery. The plan’s qualification of the unsecured-claim estimate leaves the treatment and amount of any resulting Generate claim important to the recovery analysis. Amended plan, pp. 20, 32
September Confirmation Schedule
The August 18 notice establishes the following schedule. All times are prevailing Eastern Time. Confirmation hearing notice
| Milestone | Scheduled date and time |
|---|---|
| Plan voting deadline | September 15, 2026, at 11:59 p.m. |
| Confirmation and disclosure objections | September 22, 2026, at 4:00 p.m. |
| Confirmation hearing | September 30, 2026, at 10:00 a.m. |
The separate claims notice was filed July 24, 2026. It set August 28, 2026, at 11:59 p.m. Eastern Time as the general claims bar date and December 2, 2026, at 11:59 p.m. Eastern Time as the governmental bar date. It also contains separate provisions for amended schedules and rejection claims. Stretto is the court-appointed claims and noticing agent. Bar-date notice
With the sale completed, the next material question is whether the court confirms the liquidation plan and what the trust can ultimately distribute after claim allowance and administration. The committee supports that route, but its recommendation is not a court finding or a guarantee of recovery. Committee support letter
This article was researched and written with AI assistance, using court filings, public records, and news sources. AI-generated content can contain errors. Verify all information against primary sources before relying on it. This is not legal or financial advice. See the disclaimer.