SiFi Networks America, LLC Bankruptcy Case

SiFi Networks America is now on a court-approved sale track, with ArcLink Fiber LLC serving as stalking horse and a sale hearing set for August 6, 2026, under the bidding procedures and sale orderDkt. 146.

The fiber-network developer filed Chapter 11 on June 5 after its UK parent ceased funding, the parent entered insolvency proceedings, and SiFi faced an immediate liquidity shortfall alongside substantial litigation exposure. At filing, SiFi reported approximately $206,000 of cash, $26.4 million of accounts payable and accrued liabilities, and a $2.2 million first-lien term loan from ArcLink; it also faced an arbitration award imposing approximately $17.5 million of joint-and-several liability and other pending contract litigation, as detailed in the first-day declarationDkt. 11. The Chapter 11 petitionDkt. 1 initiated a dual-track strategy centered on postpetition financing and a competitive sale of substantially all assets.

The court subsequently granted final authority for $3.43 million of new-money DIP financing from ArcLink, together with a roll-up of the prepetition secured debt, priming liens, superpriority claims, and use of cash collateral subject to a 13-week budget and weekly variance testing under the final DIP and cash-collateral orderDkt. 139. The sale order approved ArcLink's $5.853 million stalking-horse bid, principally a credit bid of DIP and prepetition secured obligations plus $200,000 in cash, assumed liabilities, and cure costs. Competing bids are due July 27, an auction is scheduled for July 29 if qualified bids are received, sale objections are due July 31, and the August 6 sale hearing precedes an August 7 outside closing date under the . The near-term case trajectory is therefore defined by the competitive sale process and closing rather than a filed Chapter 11 plan.

The court granted final approval for financing from ArcLink Fiber LLC comprising $3.43 million of new money and a $2.223 million roll-up of prepetition secured debt. The new-money component includes $1.135 million authorized on an interim basis and an additional $2.295 million under the final order. ArcLink received superpriority claims and liens on substantially all debtor assets, subject to excluded collateral and the professional-fee carve-out, under the Final DIP Financing and Cash Collateral Order.

The financing provides the liquidity needed to run SiFi’s court-approved sale process, but it also consolidates ArcLink’s control as DIP lender, prepetition secured creditor and proposed buyer. That alignment matters to unsecured stakeholders because ArcLink can use its DIP obligations and prepetition secured debt as a dollar-for-dollar credit bid. Law360 also reported the final financing approval.

SiFi Networks America, LLC

SiFi Networks America, LLC

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Court grants final approval to ArcLink DIP financing

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