Things were looking grim for the millions of users who had made mega uploads to Megaupload, as authorities stated that data could begin being deleted off the site’s servers as early as this Thursday. But the two hosting companies that currently house all those files aren’t ready to bring down the virtual axe just yet.

Megaupload’s assets have been seized so they can’t pay the hosting bills at either Carpathia Hosting or Cogent Communications. And since the Dept. of Justice no longer has any need for those files, it says the hosting companies can go ahead and hit that big, glowing red button we imagine they have installed for the purpose of mass deletion.

But Megaupload’s megaattorney says the hosting companies have agreed to wait at least two weeks before giving into the temptation to flush all those files down the drain.

“The hosting companies have been gracious enough to provide additional time so we can work out some kind of arrangement with the government,” said the lawyer.

Reprieve: MegaUpload’s data safe for two more weeks [cnet]

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