Powerwave Tech Inc fka PWAVQ

[jaxstraw]

Powerwave and Gores Group Reach Deal on Cash

Published January 31, 2013

Dow Jones Newswires

Wireless-equipment maker Powerwave Technologies Inc. (PWAVQ) reached an agreement with its private-equity investor, the Gores Group, Thursday that will allow it access to the cash it needs to continue operations.

Judge Mary Walrath of the U.S. Bankruptcy Court in Wilmington, Del., said she would confirm the agreement Thursday.

As a result, Powerwave will be able to meet its payroll obligations Friday and will be able to continue its operations through Feb. 22, when Powerwave will return to court to ask for further access to its cash. Powerwave said that if it had been unable to tap these funds, it would have had to shut down.

The wireless-equipment maker's Chapter 11 filing this week was precipitated by a fight for cash with Gores Group, which invested $35 million in September. Powerwave Technologies said that on Jan. 25, Gores Group pulled $8.3 million out of its account without notifying Powerwave, saying that the company had defaulted on its loan.

Gores Group has since returned $2 million of those funds, but the missing $6.3 million hurt Powerwave's liquidity so severely that it said it had to move its out-of-court restructuring into Chapter 11.

An additional $1.2 million of that cash was returned to Powerwave Wednesday, the company said during the hearing, but Gores Group won't return the other $5 million and has instead applied it to Powerwave's prepetition debt, bringing the amount down to $30 million.

Powerwave has called this sweeping of cash from its accounts improper and said it still owes $35 million to Gores Group.

Nevertheless, the groups were able to reach a consensual deal, allowing Powerwave to access the cash in its accounts while still protecting Gores Group's investment.

As part of the deal, Powerwave will maintain the right to try to recover the $5 million Gores Group pulled from its account, but it won't be immediately returned. In addition, Powerwave must notify the court and creditors in the case by Feb. 19 whether it plans to sell its business in Chapter 11 or whether it will reorganize without a sale process.

Powerwave bankruptcy attorney Mark Thomas of Proskauer Rose LLP said during the hearing that since Powerwave's "splat" into Chapter 11, as a result of the liquidity crisis caused by the draining of the company's account, "there have been many incoming calls" from interested strategic buyers, including competitors and other publicly traded companies.

The Santa Ana, Calif., company has been losing money and filed for bankruptcy protection Monday. Years of declining demand for its products from customers like Nokia Siemens Networks, Alcatel-Lucent (ALU, ALU.FR) and Samsung Electronics Co. (SSNHY, 005930.SE) pushed down the prices Powerwave could command for its products, which feature technology that improves coverage, capacity and data speed in wireless communication networks.

Combined with the global economic downturn, lower demand and lower prices left Powerwave without the money to continue manufacturing as it had in the past.

It had begun to restructure out of court, selling its headquarters and selling certain technologies to free up cash. The deal with Gores Group was also part of this effort. However, the loss of the $8.3 million made it impossible to continue the process without Chapter 11 protection, it said.

Gores Group said that Powerwave defaulted on Jan. 4, when it showed fourth-quarter revenue of just $23.1 million--revenue less than $51 million constituted a default, and it pulled the cash from Powerwave's account as a result.

Hopes of survival depend on cashing in on the company's patent portfolio, according to papers filed by Chief Executive Ronald Buschur. Mr. Thomas called Powerwave's 243 U.S. patents and 517 foreign patents the "key asset in the estate."

In addition to the September 2012 senior secured loan from Gores Group, Powerwave is carrying about $256 million in bond debt, court papers say.

(Dow Jones Daily Bankruptcy Review covers news about distressed companies and those under bankruptcy protection. Go to http://dbr.dowjones.com)

Read more: http://www.foxbusiness.com/news/2013/01/31/powerwave-and-gores-group-reach-deal-on-cash/#ixzz2JqDwbKEC

[T.I.N.A.]

this is looking really good - just wish there was more volume today

[Seshet]

told ya $ .03 was bottom! good call!!

[CowBoE]

Nice bounce!!!

Bought $.033s to .035s yesterday.
Looking for .08 exit.

[T.I.N.A.]

wooohoooo!! Go PWAVQ!!

[smf222]

Powerwave and Gores Group Reach Deal on Cash
Date : 01/31/2013 @ 4:44PM
Source : Dow Jones News

As part of the deal, Powerwave will maintain the right to try to recover the $5 million Gores Group pulled from its account.... In addition, Powerwave must notify the court and creditors in the case by Feb. 19 whether it plans to sell its business in Chapter 11 or whether it will reorganize without a sale process.

Powerwave bankruptcy attorney Mark Thomas of Proskauer Rose LLP said during the hearing that "there have been many incoming calls" from interested strategic buyers, including competitors and other publicly traded companies."

Hopes of survival depend on cashing in on the company's patent portfolio, according to papers filed by Chief Executive Ronald Buschur. Mr. Thomas called Powerwave's 243 U.S. patents and 517 foreign patents the "key asset in the estate."

[T.I.N.A.]

averaged down today

[Seshet]

We might even see $.026 tomorrow

[Value_Investor]

New 52-week low 0.032 was created so far! More new lows come soon...

[~MulaGreen~]

On the way down 0.005

[Seshet]

-27% Down -->$.032

[Seshet]

Amazing!! nice prediction

[Seshet]

Good call!!

[OCKHAM'S RAZOR]

Thought .05 - .15

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=78425841

[T.I.N.A.]

thanks! i'll look into it then, it says "symbol not found" on my end :/

[Smilin_B]

No issues buying or selling PWAVQ with TD-Ameritrade today.

The Q was immediately added to the ticker and shares were immediately available to trade at the open

[T.I.N.A.]

it's slow because of the ticker change....i bought in yesterday and today ameritrade hasn't updated the ticker to let me trade it yet....i can't buy more if i wanted to.

is there anyone out there that can trade this one?? with what broker?

[Smilin_B]

It does appear rather lackluster today, I agree.

Usually these spike a bit once delisted but PWAVQ had a gap up on low volume then just down and sideways with no momentum to speak of right now.

[Seshet]

PWAVQ is going down to $.03 cents

[CowBoE]

Interesting to see how PWAVQ debuts in OTC Markets.

It seems as though BK stocks actually do better in OTC Markets than in the big board...strange phenomenon.

[CowBoE]

Agree with you wholly.

BK stocks are very interesting play only if you are disciplined,
otherwise if anyone treats this like buy and hold investment,
you'll be screwed nearly every time.

Got to play quick moves with tight stop loss.

[Smilin_B]

Remember, the key here is to not be in too large a position.

Not everything goes straight up.

There may be some pain involved and you may have to protect yourself with tight stops (ie: .04/share or so).

Chapter 11 stocks are extremely risky.

I've been trading them for years, and most tank terribly while listed on their major exchange only to bounce nice on the otcbb or pinks.

Protect yourself accordingly and again, use tight stops and dont look back.

[Smilin_B]

I predict PWAV (over the next several sessions), heads to .10+

Im actually suprised it's not getting bid up in the ah session

It ended the day at .06 with over 300,000 shares trading there, so someone loaded HUGE

In after hrs, there was 72,000 shares on the .06 bid until 5:10pm est

I'm actually expecting some after hours buyers to show up this evening.

Most of these Chap 11 stocks end up basing on day 2-3 followed by very nice reversals on day 3,4 and 5

Most of them more than double, especially when they get delisted down to a lower exchange.

[tamby1]

Smilin:
open prediction?

[Smilin_B]

Now the stock can run, once the mm's on the otc get a hold of it.

Such volume the last 2 sessions and most are loaded in at over .07/share

Looking forward to tomorrow!

[Renee]

PWAV delisted from Nasdaq to OTC and symbol changed to PWAVQ:

http://www.otcbb.com/asp/dailylist_detail.asp?d=01/29/2013&mkt_ctg=NON-OTCBB

[CowBoE]

Good luck. These BK stocks are interesting to trade.

Big % swings in both direction. SCHS popped 30% today.

I think there's plenty of up/down volatility left on this.

[T.I.N.A.]

started a small position as a swing trade. :D

[~MulaGreen~]

I visited their HQ not long ago.I know what I saw there in Santa Ana...that's why I didn't buy it when u posted that Chart is @ Bottom low's in the .30's

1 Cent may come...

:)))

[jaxstraw]

CH11 VOLUNTARY FILING

http://www.scribd.com/doc/122605689/Powerwave-First-Day-Petition

[CowBoE]

Liability is twice asset. Share-Value=$0

But these BK stocks trade with 9 lives until its dead,
so look for crazy drops and bounces from here.

Gotta be quick to profit in short or long positions though.
So, don't be greedy.

[jaxstraw]

13-10134-MFW Powerwave Technologies, Inc.
Case type: bk Chapter: 11 Asset: Yes Vol: v Judge: Mary F. Walrath
Date filed: 01/28/2013

[Gori88lla]

bounce coming?

[jaxstraw]

The company listed assets of $213.5 million and liabilities of $396.1 million, according to documents filed in the U.S. Bankruptcy Court in Wilmington, Delaware.

[jaxstraw]

Powerwave Technologies files for bankruptcy protection

http://www.reuters.com/article/2013/01/28/powerwave-bankruptcy-idUSL1N0AX6KT20130128

[MASTERTRADER]

PWAV filed for BK. Turn the lights off here!

[GetnGuala]

looks stong.. .37 today at least!!!

[Peeteman]

Still concerned that PWAV doesn't have enough capital to weather the storm cell phone companies not spending on upgrades right now they are consolidating to cut costs. Continued losses may force PWAV into bankruptcy unless bought out IMO

[Penny Roger$]

Interesting levels here. Anyone else considering?

[WallStreetMyWay]

Voted..Very good PWAV, i hope you do make it Rich!

[sphistak]

I forgot all about this play. Haven't even kept up with it. They getting some contracts in, or speculation from da hurricane?

[$tockfather]

Cheers, i think we'll see a nice finish today.imo

Best of luck

[MONEYMADE]

Gap up in the AM great entry

[$tockfather]

In @ .485 today:)

Time for PWAV to get back above $1.

[MONEYMADE]

48!

[MONEYMADE]

,,,,,,,Get ready for Hurricane PWAV today--MONEYMADE


TALENT ON LOAN FROM GOD!!!

[interloper]

Heads up , looks like it could bounce off 50ma

[antalbwin]

0.75 at eod
open with the "news" at 1,35

[sphistak]

I hope stop losses. Can't possibly be dumping by the company. Looking forward to them doing something positive with that loan money!

[antalbwin]

stop losses... idiots...
$1 or more EOD