HDNet Nearing Deal For IFL Assets

October 31, 2008

The rumored deal for HDNet’s purchase of the IFL’s assets takes another step towards being completed with news from the most recent filing from the IFL:

In connection with the Sale Motion, on September 19, 2008, IFLC and HDNet entered into an asset purchase agreement (the “Asset Purchase Agreement”), which contemplates the sale of substantially all of IFLC’s assets (the “Purchased Asset”) to HDNet for total consideration of $650,000 in cash and the assumption by HDNet of certain liabilities of IFLC. The Asset Purchase Agreement is subject to higher and better offers as set forth in the Sale Motion. The Court approved the Sale Motion on October 10, 2008.

On October 28, 2008, the Court held a hearing on the auction and sale of the Purchased Assets as contemplated by the Sale Motion and entered an order (“Sale Order”) authorizing IFLC to sell the Purchased Assets to HDNet for total consideration of $650,000 in cash and the assumption by HDNet of certain liabilities of IFLC, as set forth in the Asset Purchase Agreement.

The green light has been given for the purchase of assets, with closing on the deal expected soon. The deal seems to be foregone conclusion , but the contractual i’s need to be dotted and t’s need to be crossed. Once the deal is done, HDNet will be able to take advantage of the video library to add to it’s MMA offerings, as that looks to be the only plans behind the purchase.

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