SiFi is in the first weeks of a Delaware chapter 11 that is being run as a financed, fast-track sale case, with interim DIP authority already in place and the sale process now facing a limited U.S. Trustee objection over stalking-horse bid protections.
The debtor filed on June 5, 2026 after its U.K. parent stopped funding the U.S. business, leaving SiFi with limited liquidity, a $2.2 million first-lien prepetition note, about $26.4 million of unsecured debt, and litigation pressure that included a roughly $17.5 million arbitration award and other contract disputes, according to the Dinoff First Day DeclarationDkt. 11. The business operates open-access FiberCity fiber-to-the-premises projects, but the case posture reflects a liquidity-driven need to preserve value through court-supervised financing and a sale rather than a standalone balance-sheet restructuring.
The financing path is tied to ArcLink Fiber LLC, the prepetition secured lender and proposed DIP lender. The debtor sought a $3.13 million DIP package to fund the chapter 11 runway and sale process, and prior structured case work identifies an interim order approving DIP financing and cash-collateral use, with $1.135 million available on an interim basis and a final financing hearing set for July 1, 2026. The sale path is also active: the debtor has moved to retain Sherwood Partners as sales agent effective as of the petition date, with a July 1 hearing and June 24 objection deadline under the Sherwood retention applicationDkt. 67.
The immediate case activity is therefore administrative buildout plus sale-process litigation. The U.S. Trustee has objected to the proposed $200,000 stalking-horse expense reimbursement, arguing that ArcLink is affiliated with the parent’s buyer and DIP lender and should not receive the requested bid protection on the proposed terms, as set out in the . Near-term dates include the July 1 hearing on pending professional retentions and sale-related issues, the July 8 creditors’ meeting noticed in the , and later omnibus hearings scheduled for July 28 and August 19 under the .
